You might have seen this screen recently when logging into Facebook, as new privacy controls were released this past Thursday. 
Once you click 'Continue' you're presented with a slightly confusing screen to configure new privacy settings. Your old defaults are unselected by default.
Upon seeing the new screen, I found myself just accepting the new settings and then refining the privacy controls using the 'Settings' link. Several settings were set to 'Friends of a Friend' and 'Everyone' where I didn't want this type of access. I found the most important settings under the 'Profile' and 'Search' link.
Rafe Needleman has written an easy to read article on refining Facebook privacy settings on his CNET blog.
Once you click 'Continue' you're presented with a slightly confusing screen to configure new privacy settings. Your old defaults are unselected by default.
Upon seeing the new screen, I found myself just accepting the new settings and then refining the privacy controls using the 'Settings' link. Several settings were set to 'Friends of a Friend' and 'Everyone' where I didn't want this type of access. I found the most important settings under the 'Profile' and 'Search' link.
Rafe Needleman has written an easy to read article on refining Facebook privacy settings on his CNET blog.
The new privacy controls prompted me to make some changes in my personal FB practices. I realized that I really don't want ALL my FB "friends" to see all my personal status updates. So I adjusted it so that only certain lists can see my status updates.
Patricia, thanks for sharing. You've prompted me to start making lists and do the same for privacy.
I also noticed the new privacy setting enabled the entire world to view my photos. Definitely not what I wanted either.
Despite the learning curve for settings in FB, I am happy they are giving us more control over privacy.
I've found another concerning setting and disabled sharing information via: Privacy Settings > Applications and Websites > What your friends can share about you
The more I look into the settings, the more mixed my feelings are about privacy in FB.