TMZ has two updates on Paris and Joe Francis' state of mind that tickled me pink.

Paris' shrink, Dr. Charles Sophy, claims Hilton is "not capable of any meaningful participation" in a civil trial brought against her by diamond heiress Zeta Graff. In a $10 million lawsuit filed in 2005, Graff claims that Hilton spread "vicious lies" about her that were printed in the New York Post. Paris' shrink claims that Hilton is "emotionally distraught and traumatized" from the May 4 hearing where she was sentenced to 45 days in jail for breaking probation in her DUI bust, and asked a judge to allow her sufficient time to recover.

As for Francis, sources inside the Florida jail (that he's called home for the past 32 days) say he's cried "every day" since he's been there. Poor baby! We're told that the jail is old, "extremely uncomfortable," and prone to "terrible" leaks during any kind of rainstorm. It was reported last month that a death row inmate had been taunting Francis, and that he was "breaking down" under the constant harangue.

TMZ has learned that Francis is about to be released from Bay County Jail in Panama City, Fla. -- but will go straight into the hands of the Feds, who will take him to Nevada to face tax evasion charges.