A source told Heat magazine (via Unreality TV), "Taylor's not angry any more, but there's a huge part of her that thinks she should be smart and keep away from him... she's scared he'll break her heart again."
The insider added, "That's why she's trying to take things slowly and see how serious he is about this. They're both going to be on the East Coast for New Year's Eve, hosting at Ryan Seacrest's telecast, so Taylor's said they can talk properly then. None of her friends are shocked by their reunion - Taylor never got over him."
Er...there seems to be one little flaw here – One Direction, will be appearing on the Dick Clark's New Year's Rockin' Eve thingy – but they already pre-recorded their performance.