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As part of the privacy changes, Facebook automatically created a new friend list for each user called "Limited Profile" and put all of the users who you set to limited profile access in this new friend list. Just go to the friends page and you should see the new friend list on the right: http://www.facebook.com/friends/.
"Well this morning Facebookâs new privacy settings went live and with it came the option to now opt-out of the personalized SocialAds that leverage our profile picture."
That option was there a while back.