I noticed this for the first time on facebook today. On the photos page where it shows all the pictures your friends have posted, there's that part on the right hand side that rotates between ads, events, and suggestions...but there's also one that appears called "photo memories." Well, today I noticed that it was letting me know that certain friends were tagged in albums. The problem is that these friends have their settings set so that no one can see their tagged photos. Also, the albums it's telling me they're tagged in are friends that we don't have in common. I really hope they fix this. This could really get some people in trouble. There's photos I'm tagged in that never bothered me because I knew that the chance that family members etc would seem them was like zero. Ugh, facebook
ETA: Also, one of my albums that I have set so that only 3 people can see it came up in my photo memories telling me that a friend (one of the people that can see it) had been tagged in it. I really hope that photo memory doesn't somehow let people jump that album privacy setting this way.