While I’m working on a Facebook inspired privacy discovery project, I need to highly recommend that everyone take the time to review their the official Facebook privacy settings page to understand how data about you is used and shared, but in a nutshell Facebook tells us:
Your name, profile picture, gender and networks are always open to everyone. We suggest leaving the other basic settings below open to everyone to make it easier for real world friends to find and connect with you.
You need to understand that this lack of privacy also makes you *more* available to their advertisers, which is what they’re really pushing for, identity theft and other potential crimes (ie- stalking). You need to login to Facebook and then click on the text Account on the top left side of the screen, and then choose Privacy Settings in that dropdown. (or if you’re logged in, click here). Take a look at these screen shots below, first is the Recommended settings Facebook presents to you:
EFF has a page covering what they call 
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School spies on student, busts him for…eating candy
Prototype of the school's proposed catcam 3000
UPDATE: it looks like this case has been settled, Pennsylvania school settles laptop webcam spying suits for $610,000 -but- Less than a third of that will go to the students. “A total of $185,000 will be put in trust for the students. Their lawyer will receive $425,000.”
Today fak3r from fak3r.com and Matt from Obtuseview.com are working together to bring you a multi-perspective piece on internet security. Rarely are team-ups like this seen except in the pages of “Marvel Team-Ups” or “a very Special Episodes of Diff’rnt Strokes.”
So the Pennsylvania school using webcams on district provided laptops to spy on its students story just gets more and more bizarre. The parents of one of kids is (rightfully) suing the school, “…alleging the district unlawfully used its ability to access a webcam remotely on their son’s district-issued laptop computer [...] it watched him through his laptop’s webcam while he was at home and unaware he was being observed” This is apparently proven when the school “caught” the student engaging in “improper behavior” in his home, via a webcam image. Meanwhile the school claims it had the ability to observe images via the webcam, but that it would only be used if the laptop were reported to be lost stolen or missing, and even then “…the district would first have to request access from its technology and security department and receive authorization.” Additionally, the school claims this monitoring was all part of an agreement defining “acceptable-use” that the family had to sign to allow the student to take the laptop home, which also states that the family was required to buy insurance for the borrowed laptop. So far, so ridiculous, but then it starts getting sillier…