There is more drama on the set of Grey's Anatomy. Sources say most of the cast are upset by the news that a spinoff series is in the works that would follow Kate Walsh's character, Dr. Addison Montgomery-Shepherd. "The rest of the cast seemed instantly resentful of [Walsh]," says an insider. "They each thought they'd be the one chosen to get their own show, and now they're giving Kate the cold shoulder." Lead actress Ellen Pompeo "seemed particularly peeved because she felt that, as the star, she should have been consulted," adds the source. People mag is reporting that Katherine Heigl has now dropped out of contract talks with show producers over salary issues. "Katie is disappointed and hurt that [producer] Touchstone doesn't value her as much as her other co-stars, especially Sandra Oh and Isaiah Washington," an insider told the mag. A rep for ABC Touchstone had no comment.