The story, boiled down, is this: with Kate Moss and Pete Doherty split, and Doherty busy cleaning himself up and uncontactable, management panicked about the use of an image of Moss on the Shotter's Nation sleeve and instead stuck a random photo of a woman in knickers on the cover instead.
Victoria Newton's starting something, mind:
KATE MOSS could go KP Nuts when she sees the cover of BABYSHAMBLES’ new album.
KP Nuts? Eh? We know what Newton's getting at, but it took us a couple of minutes to make the connection.
About six paragraphs later, Newton explains the reference:
I’m sure Kate — who sung duets with Pete under the name KP NUTS before their split — will be gutted to learn her face isn’t on the album after helping with those four tracks.
Will she, though? She's dumped him and moved on. Isn't it a bit more likely that either she'll be either relieved that he's not trying to flog albums with her picture, or annoyed that they've chosen a lookalike body double to try and imply her endorsement without getting into choppy copyright problems?

The decision to rip the head off the photo of the lookalike model is disturbing, though - taking a catalogue shot and making it pornographic (in the strict sense of the word) by removing the face and head of the model, leaving her a featureless and depersonalised 'body'. This is exactly the same thing that got Rain into trouble twenty-something years ago; you'd have hoped that a supposedly smart band like Babyshambles would have spotted that objectifying women might be a slightly more shameful outcome than falling into an argument with a knicker company over the copyright of an underwear advert.