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Australian actress Melissa George guest stars starting with Thursday’s episode as Sadie, Meredith’s friend from the past. “I show up at her doorstep,” George tells PEOPLE. “[Sadie] gets a job at Seattle Grace due to her father, which is yet to be explored. She’s taking a leadership role at the intern society, which is hysterically funny. I haven’t stopped laughing for six weeks.”

Apart from inciting jealousy in Meredith’s current best friend Cristina Yang, Sadie’s character, who is bisexual, will be full of surprises?including possible romances, says George, 32. “I don’t know whether it’s male or female. It could be either; it could be both. We’re all dying to find out.”

Even more, I’m told by those who work on the ABC series that the gay-themed storylines and gay characters are being downplayed and even erased from the series and upcoming scripts.

And that goes for the series’ latest newcomer, Melissa George of Alias, who joins the show this month…

“Melissa came on as a lesbian character,” a reliable insider tells me, “but they changed the script and now she isn’t. She starts off flirting wth Callie but it never goes anywhere.”

Grey’s has included a prominent bisexual/lesbian storyline this season in the blossoming relationship between Hahn (Smith) and Callie (Sara Ramirez). I’m told that storyline will end abruptly in this Thursday’s episode, which will be Smith’s last appearance on the series.

“They don’t really give her a goodbye,” an ABC source tells me. “It ends rather abruptly.”

EW’s Michael Ausiello first broke the news of Brooke’s dismissal today.

“I was very excited when they told me that Erica and Callie were going to have this relationship,” Brooke told EW. “And I really hoped we were going to show what happens when two women fall in love and that they were going to treat it like any heterosexual couple on TV. And so I was surprised and disappointed when they just suddenly told me that they couldn’t write for my character any more.” Source