By ALAN SMITH

Tom Cruise and Katie Holmes' parents made peace at Katie's surprise 27th birthday bash in New York City. Tom's mother, Katie's siblings and her parents, Kathy and Martin, flew in for the event. Her parents had reportedly been less than thrilled that Katie embraced Scientology and got pregnant out of wedlock.

"There's no friction," said Carol Zydorczyk, the actress' aunt, in an exclusive interview. "They all adore Tom. They are one big happy family."

At the party, which was at FAO Schwartz, the couple danced on a giant piano, and Tom did a handstand!

Carol added: "I was hoping the wedding would be at Christmas. But Katie didn't want to walk down the aisle looking pregnant. What bride would?"