I stumbled across this interesting site that scans your Facebook for privacy holes. Check out http://www.reclaimprivacy.org/. When you hit the reclaimprivacy.org site, read the instructions carefully and run their tool against your Facebook privacy settings. The service will offer up recommendations to tighten up your Facebook security and fix them for you. Give it a try to see if you have any privacy holes that need filling. I was amazed at how "unprotected" my information was.
Here is my take on the privacy issues facing Facebook. I think that CEO Mark Zuckerberg's head became inflated after learning Facebook became the #1 social network site, surpassing MySpace and others that he really did not care about heeding any concerns of anyone that had been trying to warn him of the privacy issues. Now that Facebook has been in the media negatively he decides that it's time to wake up and realize the dream might be over if he fails to deal with the problems facing Facebook. For the changes that Facebook made as a result of the fierce criticism you can read Tom Spring's article "Facebook beefs up privacy with three big changes" in PC World. http://www.macworld.com/article/151570/2010/05/facebook.html#commentsjump