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Talk about a shocker. Lee Masters, MTV’s most popular and highest-profile exec, resigned Monday, citing his discontent with the 24-hour video network’s corporate reorganization this spring, which had Masters working under new MTV president John Reardon. “I gave it a try for several months,” said Masters, who was the network’s programming chief. “But the new structure didn’t give me much room for growth or authority.” Reardon issued a statement Wednesday saying Masters’ contributions were “significant.” MTV insiders say Masters’ relations with Reardon, MTV’s former sales chief, had deteriorated as Reardon took more control of the network’s creative affairs. The sudden departure comes as a big blow to the record industry, which had developed close ties with Masters, who enjoyed considerable respect and popularity in the music business community. . . . It was “shucks, gosh ‘damn, get off your heels and jam” Tuesday at the Palace where fans were treated to a raucous three-hour dance dissertation, courtesy of George Clinton’s P-Funk All-Stars. Celebs on hand ranged from Soul Train’s basso profundo Don Cornelius to actor John Cusack, plus a rainbow-coalition of popsters, including Simply Red’s Mick Hucknall, James Ingram, members of Fishbone, Sheila E. (who hopped on-stage and played drums on “One Nation Under a Groove”), Flea (from the Red Hot Chili Peppers) and Jane’s Addiction’s Perry Farrell.