Around the DC area, a phrase you’ll hear often is “it’s not what you know, it’s who you know.” This posting reflects how even that has be "internetized,’ as now you can go online and fine out who’s who at the company you’re interested in, and get some background information on them so that you may be able to get yourself a foot in the door.
At the same time, friending someone on Facebook or Myspace isn’t neccessarily going to get you a job, unless you spend a lot of time trying to go to the same events etc, which is possibly a waste of time, as it doesn’t guarantee you a job, and definitely creepy. Still, social networking in general is beneficial in that people you have reconnected with may be able to provide an ‘in’ to a company etc.