You can create groups of people within Facebook. I've done this for people I work with. They aren't allowed to see tagged pictures of me, my wall, status updates, comments and a couple other things. Basically anything I can't fully control.
In the past when you limited your profile the changes would be sweeping and many or all of your friends would be affected. Now you can be very specific about what individuals or groups of people can see on your profile.
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