I can understand why an employer would look at someone's online profiles during the hiring process.  I do worry that they might hold things against people that they really shouldn't.  Your politcal opinions, religious affiliations, relationship status, etc. are really not issues that employers need to know or should consider in hiring.   People need to understand that the internet is not as anonymous as they think and they definately need to consider that your future employer, your boyfriend's mom and your next door neighbor might see what you are posting online.  People really shouldn't rely on those privacy settings but should consider the content public.  I have read articles about people losing their jobs because of things their kids posted on their myspace or facebook.  That gets into some scary territory. 

The job market is very competitive these days and employers are looking for any reason to give (or take away) an edge to an applicant as they usually have several equally qualified for the position.  The law has changed so much that they cannot really ask former employers about the employee and get any useful information.  So they look in other places.

I agree that I do not think picture of you at a toga party are going to really reflect your work ethics, but that is all they have to go on.  So the best thing is just make sure you do not post anything you would not want your parents to read about.  That should make you safe from employers.

Or be like 20th century geeks, and just ignore the 21st century conventions.

Interesting enough it's ironic that some people, who's weekend lifestyles leave much to be desired, know they are doing the wrong thing yet get mad when they get punished for it, a la losing a job opportunity. One would think people would avoid such things so that it doesn't affect them in the future but people these days don't think they should be responsible for thier actions.

Stories of college parties where like fantasies I would actually think would never really come true (since I never went to college) until I saw videos on the internet showing these parties uncut. If these parties resemble what's been going on for years or even decades in colleges I can't imagine how anyone could think their wife or husband did not sleep with every person they could during those years and imagine their kids if they found out. Even more employers.

What I am curious though, Facebook is mostly private, people can only see your site if you add them to your freind list, right? Same with Myspace? So how do these employers see their sites?

As a hiring manager I can see the utility in using the internet to gleen as much information as possible about potential candidates.  Google searches of names, email addresses, previous employers, facebook, myspace, linkedln, etc.  I have a colleague who think doing so violates a persons privacy but I disagree.  His argument is that if he wants to dress in drag or go wild running naked in the streets that is business.  My response is to validate his claim that is his business but it becomes a companies business if the position is a public facing such as sales, executive, training, etc.

Oh, as for myspace and facebook.  Yes you have to have an account to search for them.  You can get some very basic information at the very least.  Sometimes a profile pic is all you would need.