DEFINING GRAY AREA OF TABLOID - AND PENACOLI AS REPORTER : NEWS & NOTES.

Byline: Daily News wire services

Jerry Penacoli isn't a tabloid reporter. He just plays one on TV.

``What's my definition of tabloid? I don't know,'' says ``Hard Copy's'' new correspondent (a tad testily, we might add). ``It's not my job to define tabloid. It's just my job to `do it.' ''

A few minutes later, he calls back. In much cheerier spirits.

``Tabloid is that gray area between news and entertainment. It's having more latitude with stories; being able to tell a story with a bit of a smirk. It's the National Enquirer, the Globe. But on TV.''

After working for cable's E! Entertainment Television, Penacoli joined the syndicated ``Hard Copy'' in August. In addition to reporting, he hosts ``Hard Copy Weekend'' with Diane Dimond and subs for weekday co-host Barry Nolan. (Penacoli's next shot with Terry Murphy is Dec. 18 and 19.)

Now that he has a three-year contract with Paramount, Penacoli finally can put down some real roots in L.A. It's his first deal since moving to the coast several years ago to pursue an acting career.

As an entertainment reporter, Penacoli specializes in ``fun, upbeat, tongue-in-cheek celebrity stories with a little twist.'' His pieces range from ``Rocky's'' 20th anniversary bash at Planet Hollywood to Jim Carrey and Lauren Holly's wedding to the men in Sharon Stone's life.

``The stuff I do isn't hard news, but it's not soft, either,'' says Penacoli, who produces many of his pieces. ``With E!, I made a name for myself in entertainment. This is an extension of that. I love what I do. I'm proud of what I do. I'm very happy.'' (We're happy you're happy, Jerry.)

Oprah-Madonna, Madonna-Oprah: The Material Girl will give her first television interview since becoming a mother in October. The chat on Friday's Oprah Winfrey show, to be taped before an audience in Los Angeles earlier in the week, will mark Madonna's first hourlong television interview.