In August 2006, it was revealed that artists Banksy and Danger Mouse replaced 500 copies of Hilton's debut album in various UK record stores with their own parody remixes and cover art. Along with completely reworked liner notes that included topless photos of Hilton slathered with slogans like "Every CD you buy puts me even further out of your league", Danger Mouse has replaced Hilton's original songs with his own remixes.
Hilton is the founder of Heiress Records, a sub-label of Warner Bros. Records, which she created in 2004. Heiress Records' only release as of yet has been Paris, though Hilton has said that she plans to sign new artists in the future. According to June 2007 news reports, however, Hilton has been dropped by Warner Bros. Records, because single and album sales did not meet expectations. Furthermore, aWarner reprensentative was quoted saying, "We are not expecting any new Paris Hilton material in the foreseeable future." 
In the autumn of 2004, Hilton released an autobiographical book, Confessions of an Heiress: A Tongue-in-Chic Peek Behind the Pose, co-written by Merle Ginsberg, which includes full color photographs of her and gives her advice on the life as an heiress. Hilton reportedly received a $100,000 in advanced payment for this book. Some in the media panned the writing as amateurish, and the book was parodied by Robert Mundell on The Late Show with David Letterman. Nonetheless, the book became a New York Times bestseller. Hilton followed it up with a designer diary, also with Ginsberg, called Your Heiress Diary: Confess It All To Me.
Hilton has helped design a collection of purses for Japanese label Samantha Thavasa, and has also been involved in the design of a jewelry line for Amazon.com. In 2004, Hilton was involved in the creation of a perfume line by Parlux Fragrances. Originally set to be a small release, demand was high and necessitated a wider release before Christmas of 2004. The launch was followed by a 47% increase in sales for Parlux, which was predominantly due to sales of the Hilton-branded perfume. After the success of Hilton's perfume, Parlux Fragrances released several more perfumes with Hilton's name, including fragrances lines for men.
Hilton lent her name to a chain of nightclubs known as Club Paris in 2005. The first of which in Orlando, Florida has been a success, and a second club located in Jacksonville, Florida opened in July 2006. Hilton was fired in January 2007 by the owner of Club Paris, Fred Khalilian, after she had failed to attend several scheduled promotional appearances.
According to Forbes Magazine, Hilton earned approximately $2 million in 2003-2004, $6.5 million in 2004-2005, and $7 million in 2005-2006.
Hilton was engaged to fashion model Jason Shaw from mid-2002 to early 2003. On May 29, 2005, she announced her engagement to Paris Latsis, a Greek shipping heir; the engagement was called off five months later. Thereafter, she began dating another Greek shipping heir, Stavros Niarchos III, but in May 2006, Hilton publicist Elliot Mintz informed the press Paris and Stavros had broken up. In an attempt to rediscover herself, Hilton imposed a ban on sexual activity for one year starting in July 2006. She told Regis and Kelly: "One-night stands are not for me. I think it's gross when you just give it up. Guys want you more, if you don't just hand it to them on a platter."
In July 2006, Hilton was photographed kissing her best male friend Brandon Davis, the man who "ranted against" Lindsay Lohan on national television, five days later.
In January 2007, Hilton's private life again created headlines with the launch of ParisExposed.com, a website that featured images of personal and medical documents, video, and other private material, allegedly obtained when the contents of a storage locker rented by Hilton were auctioned off due to lack of payment. CNN's Anderson Cooper 360 discussed footage obtained from the website which features Hilton using several ethnic slurs. On February 3, 2007 Hilton obtained a temporary injunction against ParisExposed.com, closing down the website.
In a June 11, 2007 phone interview from jail, Hilton told Barbara Walters that while serving time in jail, God has given her a new chance, and that she will no longer "act dumb"
The leak of a three-year-old home-made sex video of Hilton with her then-boyfriend Rick Salomon a week prior to the premiere of her Fox reality series The Simple Life attracted worldwide attention in late 2003.  The release of the tape led to speculation that it was a deliberate publicity stunt,  but Hilton has strongly denied such claims and stated she was "embarrassed" and "humiliated" by the publicity brought by the tape.  The sex video, subsequently titled 1 Night in Paris in 2004, was later released on DVD and Hilton received directorial credit. The film earned three AVN Awards in 2005, including "Best Selling Title of the Year". Hilton originally sued Salomon over the release of the tape, but settled out of court in July 2005. Hilton was reportedly awarded up to $400,000 and planned to donate a percentage to charity,  although in a 2006 interview with GQ magazine she stated that she never received money from the sale of the video.