Microsoft announces that the Xbox 360 Fall Dashboard Update on December 4th will include Friends of Friends social networking features.

With Friends of Friends You'll be able to check out the friends lists of fellow Xbox LIVE members right from the Dashboard. With this new feature, members can find old friends or connect with new ones within the community of more than eight million people on Xbox LIVE around the globe and send messages and game invites, as well as compare games and Achievements.
When the Fall Dashboard update is distributed on December 4th, the new default setting on Xbox LIVE will be active, enabling members to see the Friends lists of other Xbox LIVE members.
If you'd like to keep your friends list private, you can take the following steps to change your settings beginning today here.

Steps:
Log-in to select one of the three options available for your Gamertag:
- Everyone (only available to members 18 and older)

- Friends only (available to members 13 and older)

- Blocked (available to all members, and automatic for anyone under the age of 13)

Via Xbox.com.