Quick & Dirty Facebook guide by Rob Ellis...my resources follow

Quick 'n' dirty guide to staying safe on Facebook
First of all I, or for that matter anyone else, can't guarantee safety but I hope this page will make some difference for readers.

Background
For sometime now changes to Facebook's privacy settings have given rise to safety concerns. In any case some users were not being at all careful enough with what they posted and with whom they communicated. Facebook are now rolling out new and simplified arrangements for managing your privacy settings http://blog.facebook.com/blog.php?post=394231632130 but I wait to see whether these allow you the degree of privacy that was once available of whether the changes are merely about a user's ability to manage their current settings more easily.
The links below illustrate the changes made to settings themselves. Please note that I can't guarantee the content/accuracy of external sites or documents.
http://mattmckeon.com/facebook-privacy/
http://www.eff.org/deeplinks/2010/04/facebook-timeline
The idea that your details can be used to steal your identity, your pictures used for a whole variety of unpleasant purposes, your posts used against you in interviews, hate pages set up, location posting prompting robbery from empty houses and other outcomes have been well rehearsed. The question is what to do to minimise the likelihood of this happening?

Before something goes wrong

1. Don't share your password with anyone no matter how much you love them. This old cynic knows that times change. Passwords are like toothbrushes; you wouldn't share that with your best friend!
2. What you say is in front of far more people than would normally hear you in the 3D world. Don't say anything you wouldn't want the world to hear.
3. Keep it (and by it I mean everything) private. And no, it isn't private to let just friends see those dodgy pics. That's just one step away via copy and paste from the whole online world seeing them. Have a look at http://mashable.com/2010/02/19/facebook-update-privacy/ for advice or http://www.huffingtonpost.com/2010/05/13/facebook-privacy-settings_n_575732.html?ref=fb&src=sp for video help. This site gives more video 'howtos' especially about friends lists. http://www.allfacebook.com/2009/12/facebook-privacy-video/
4. Teachers, don't add students as friends. It's a shame but not a good idea unless your pages are exclusively for learning.
5. Advice for parents. http://www.commonsensemedia.org/facebook-privacy-settings-what-parents-need-know
6. Check your settings. http://www.reclaimprivacy.org/ or alternatively http://www.profilewatch.org/
7. Some specifics to correct now. http://finance.yahoo.com/family-home/article/109538/7-things-to-stop-doing-now-on-facebook
8. I can't emphasise care with images enough. Once they're out there they're out there and for good. Think hard before you post even if your privacy settings are as good as possible. More people, even unexpected ones, can see and copy them than you might think.
9. When you add a friend of a friend remember that they might never have met either.
10. Read the privacy guide. http://www.facebook.com/privacy/explanation.php
11. Don't include your email. If that's compromised it takes ages to change to a new one. Don't include your year of birth either because it makes identity theft one step easier.
12. If you see something about someone else report it. If you just look you're part of the problem.
13. If you only go to one of these sites make it http://www.thinkuknow.co.uk

NB. See below for two documents specifically for teachers by other writers.

When things go wrong
So let's suppose the worst has happened. What do you do? Most of the advice focusses on cyberbullying and unwanted contact.

1. Well for a start tell someone. I can't begin to imagine the range of scenarios but this seems to be key.
2. Keep copies of all the nasty stuff. Learn how to save hyperlinks and to take screenshots of pages. Many online offences are their own evidence.
3. At the bottom of the first column is a link to block that person. Use it.
4. Similarly there is the facility to report pages that can be found in the same place. Check Facebook's terms and conditions so you can be specific when you complain. http://www.facebook.com/Spiller7#!/terms.php?ref=pf
5. Don't engage with the offender(s)
6. Learn how to report. If you're a young person click the CEOP REPORT button in my nav bar.
7. Where to go if your account has been hacked. http://www.facebook.com/help/?page=1025
8. Specific advice from bullying.co.uk http://www.bullying.co.uk/index.php/young-people/cyberbullying/facebook-bullying.html

View Robs EXCELLENT ICT talk web site:http://www.icttalk.co.uk/

You can find Liverpool's Facebook resources at:
https://ict-liverpool.wikispaces.com/Facebook-ED