Facebook's TOS used to mean that when an account was closed, any rights they claimed to the original content you uploaded would immediately expire. But due to a change in the TOS, any content uploaded can be used by Facebook in any way they please, forever- even if an account is closed. Not only can Facebook use this content, but they can sublicence it (meaning that any third party, deemed fit, could use this content).
The actual changes to the TOS are noted at the consumerist.com
A clause in the TOS states that Facebook "reserve the right to change any aspect or feature of the Facebook Service at any time without notice." Which allows this change, without the consent and knoowledge of Facebook users.
This does not seem right, and while the reality of these changes may just be Facebooks owners trying to cover their own backs, it does allow for some scary possibilities.
Careful what you put up on Facebook!