LATEST: Director Jason Reitman has solved the mystery of Katie Holmes' deleted sex scene in THANK YOU FOR SMOKING - the reel of film was lost.

Insiders were quick to blame Holmes' fiance Tom Cruise for the omission of the raunchy scene, conspicuous by its absence at the Sundance Film Festival, but Reitman insists a young production assistant misplaced the saucy footage.

He tells the New York Daily News, "It was a projection error. They just lost that reel."