Facebook founder Mark Zuckerberg, who has come under a lot of personal fire for the privacy issues, wrote the blog posting explaining what they're doing. In the post, Zuckerberg wrote the new privacy controls focus on three things: "a single control for your content, more powerful controls for your basic information and an easy control to turn off all applications."
They've also posted a new privacy guide for how it all works.
I'll start playing around with everything, but in the meantime, what are you thinking about the changes? To get started, here's a view of the new privacy guide: