I've just seen this - anybody understand it? From Rapisardi Intellectual Property:
Recently the Tribunal of Rome has established the correct interpretation for the article 2 of Facebook Statement of Rights and Responsibilities, that distinguish the concept of IP contents (i.e. photos and videos) from other contents not covered by Intellectual Property rights.
Quoting the tribunal verdict, The freedom to use contents published by users using the Public setting is strictly limited to the information and does not concern the IP content, since the users only grant Facebook a non-exclusive, transferable license
Therefore no one is free to use uploaded photographic images without the owners consent on the sole ground of being published with the Public setting.