Facebook’s new privacy tool is a nice effort to get its 350 million users to get a better grip on their online privacy. All of Facebook’s members will be required to refine settings with a new software tool that lets them specify who sees each photo, video, update or other piece of content uploaded to the website.
Facebook hopes the changes make people comfortable sharing even more information.

F.A.Q for Facebook’s new privacy tool

If you haven’t yet seen the three-step transition tool for reviewing and updating your privacy settings, you will shortly.Keep in mind that you also won’t see the new Privacy Settings page until you’ve gone through the transition process.

Can I limit access to my Friend List?

In addition, you can further limit the visibility of your Friend List to other people on Facebook if you want. After you’ve completed the transition to the new privacy settings, you’ll be able to click on the pencil icon in the top-right corner of the “Friends” box on your profile. Unchecking “Show my friends on my profile” will prevent your Friend List from appearing in your profile.

Can I limit access to my Wall?

There’s been some confusion about whether you can still limit access to Wall posts from friends and applications. The answer is yes. Just as before, you have complete control over who has access to posts your friends have made through the “Posts by Friends” setting under “Profile Information” on the Privacy Settings page.

To give you as much information as possible about how to control your experience on Facebook,they have short video that walks you through the new Privacy Settings page.You can check it out here.
The change promises to help Facebook users prevent embarrassing images or overly revealing updates from being seen by business acquaintances, bosses or others not part of inner circles of online friends.