I recently wrote a law review article on social networking sites (it can be viewed at my SSRN Author page: http://ssrn.com/author=624360 ).  I included proposed solutions that were both legal and educational in nature.  I am pleased to see MySpace and the nation's attorneys general announced a plan in January 2008 that would greatly improve the safety of children using social networking sites.  Only time will tell whether MySpace honors this agreement but it is definitely a step in the right direction.  To learn about the details of the agreement go to :

http://www.naag.org/nations_attorneys_general_announce_nationwide_agreement_with_myspace_regarding_social_networking_saf.php