UPDATED: American Horror Story co-creator/executive producer Ryan Murphy lifted the veil a bit on the upcoming third installment of the FX horror series. At a screening of the season finale tonight, he confirmed that the storyline in season three will be a romance set in modern times, and that Sarah Paulson and Evan Peters will join star Jessica Lange on the next cycle. All three appeared both in American Horror: Asylum, whose finale airs next Wednesday, and the original American Horror Story.