both larry birkhead and howard k. stern continue to claim paternity. what larry says he always knew. >> i told you so. >> reporter: howard k. stern reluctantly accepts defeat. >> i'm obviously very disappointed. >> reporter: stunningly, the two foes quickly bury the hatchet. so, you're on the same side now? >> same side, and same page. and really, to be honest, the minute after the paternity test was over, he's helping me change dannielynn's diaper. "this is how you feed her." it's been nonstop since then. >> reporter: today, the single dad is raising his daughter 2,000 miles from the hollywood glare her mother adored, but that hasn't stopped some of the questions that can come with fame. >> people think she's got millions and millions of dollars. and one of her friends came up to her andai and -- >> reporter: and what does she say to that? >> she came home and asked me where the money was. and i said, "i'm still looking for it." >> reporter: he insists dannielynn is no heiress. how do you earn a living? >> photography. i also work in real estate, and

happened just after she was born, well, she and her dad believe it or not are very friendly with howard k. sternlarry for paternity. he says once it was all determined, he and howard joined forces to help raise dannielynn, so everything they could do to try to give this girl just a very calm life. >> we remember when they were both here some years ago and just very, you know, approachable little girl and very sweet and how larry how he broke down when you read the letter like that. but people do still want to know about the money that the fortune that she had. >> and, well, everybody remembers that big court case and so forth. they never got a penny of the estate from j. howard marshall, the elderly man she was married to. he says they do well. he has a job. he's a photographer and dabbles in real estate but does not have a huge fortune. he's just trying to make it and obsessed with her pet lizard. billy bob joe sr. jr. >> they live in kentucky. oh, wow. she seems so happy and loved. >> very, very much loved. >> the most important. >> and mostly out of the public glare, that's what's most import