Social networking sites--Can you be denied graduation?

I have been looking into social networking articles for our fourth wiki posting and read this article in the Chronicle for Higher Education. Unfortunately, the article can not be accessed online without a paid subscription so if you want to read the article I can send you a pdf file. Two years ago Stacy Synder's profile was found on Facebook by the Millersville University of Pennsylvania's administrators. The photograph showed Ms. Snyder "drinking from a yellow plastic cup." Without a judicial hearing, the administration deemed her unfit to become a schoolteacher and denied her an education degree. They did allow her a degree in English instead. Not surprisingly, Ms. Snyder is suing the school stating that her free-speech and due-process rights were violated. I would say I agree with her. (As a side note I have a problem with her being awarded an english degree as if they were saying, "You are not fit to be an educator but you can be a poet, writer, etc. As if drinking and english go hand-in-hand).

I am concerned by this story because I'm not sure that school administrators should be allowed to suspend you or strip away your degree just because they found a photograph of you drinking on a social networking site. While colleges claim they do not actively search these sites (who would have that kind of time or money) students are still at risk every time they update their Facebook or Myspace page.

The Foundation for Individual Rights in Education is backing Ms. Snyder's case and believes that universities are too quick to punish students for what they read on students' blogs or webpages. I will state that students should be more careful about what they put out there for others to see and read. This, again, comes down to the difference people have in the definition of "privacy." While I understand that school administrators might not want to see photographs of underage drinking or partying; it is not something that is shocking by any means. I see no harm in the photograph found of Ms. Snyder (although I base this on what I have read) and feel that stripping her of her degree was unwarranted. Any thoughts?