If you are having problems trying to get Facebook to set cookies properly in IE7 and below when the site is sitting in an iframe and have a different domain with its parent container, check out this article to create a privacy policy for IE7.
http://www.softwareprojects.com/resources/programming/t-how-to-get-internet-explorer-to-use-cookies-inside-1612.html
and this fb forum thread:
http://forum.developers.facebook.com/viewtopic.php?id=452
Just tried it and FB Connect now works with 3rd party iFrame containers 
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