While at first hopeful that Facebook would choose to keep them on after MySpace dumped them, Project Playlist woke up to some holiday disappointment. Facebook has caved in to pressure from the RIAA and others, and opted to ban Project Playlist from their site, preventing their members from making use of the playlist sharing service.

This is one of numerous large setbacks to the service. Project Playlist says they will try to work with Facebook to come up with an agreement that will let them restore the service, but that seems unlikely at this point. All they have going for them now is a pending deal with Sony BMG and that alone may not be enough to save them. They do have an ample user base, in the tens of millions, but will have to find a way to fend off numerous lawsuits and convince social networking sites that their service is safe.