Here beginneth WW3? :more Facebook stuff

So what does everyone think of this story?

http://technology.timesonline.co.uk/tol/news/tech_and_web/the_web/article2087306.ece

Leaving aside whether Oxford should have antiquated rules forbidding students from celebrating (oh f'heavens sake!), who is most in the wrong here?

Should the girl have checked to make sure her facebook "privacy" settings actually stopped everyone seeing her pix of drunken devastation?

Should Oxford have allocated resources to people "spying" on facebook?

Should Facebook have offered privacy to my-Friends-Only as the default, not leaving it up to the sense of people who think sparying each other with champagne and flour is the height of wit?

Should info gathered on facebook be regarded as de jure "private" and therefore not useable, say, as evidence in "court" (like evidence gathered in nprivate houses when police break in without a warrant) - or is that as silly as saying that if proctors had seen flour battles in the street they shouldn't have been able to use the evidence of their own eyes?

Is Facebook "private" or "public"??