Applications
Go back to the main privacy menu and click on the "Applications." The first tab will give you an overview of Facebook's applications policy, which amounts to this: Installing an app on your Facebook account means it will be able to access all of your information and Facebook will not be liable for the consequences. The "Other Applications" tab (pictured here), allows you to control what information about you your friends can pull from with the applications they use. Check boxes to allow access, uncheck to limit access.