Six months after being hauled away in an ambulance, looking lost and afraid, Britney is coming back, baby!

"She's the best I've seen her in three years," a well-placed source in Britney's camp told the Daily News. "She has her kids back now and she's working on a new album. Hopefully it will be out by the end of the year."

"These are baby steps. She's taking every opportunity to see her kids, and the last thing she'll do is tour for three months or take the lead in a feature and be away from them again," the source said. "Maybe she'll go out on tour after the new year, but something short."

She is making a great effort to pull it together for her kids, too.  "The overnight visits are great positive reinforcement for her. She almost has the equivalent of one-third custody back, and being able to care for them is enormously helpful to her progress," another source close to the singer said.

Britney remains under the conservatorship of her father until at least July 31st, at which time the court will re-visit the issue. A custody hearing for Britney and Kevin Federline's sons, Sean Preston and Jayden James, is scheduled for next month.

"She's a true professional in the studio. She's very focused, and she stays as long as it takes to get the job done," said songwriter James (Jim Beanz) Washington, who's collaborating with Britney and mega-producer Nate (Danjahandz) Hills on the new Jive Records album.

Experts say a triumphant comeback is possible if Britney stays focused.

"We heard all this talk of a comeback last year, but she wasn't committed. She seemed committed to becoming a train wreck, not the beloved pop star," said Morris Reid of Washington image consultancy Westin Rinehart.

"We know this woman is talented. And who knows, maybe all the pain is both a curse and a gift," he said. "Difficult times are when some artists create their best work. She could use her music to express her feelings right now. And we all know people are interested in Britney's feelings."

Such fantastic news.  Things sure look good for Britney and I hope that even after the court releases her Dad from his responsibilities, she will continue on this positive path.