The story is wrong, people can view what others have posted on your timeline, which they could at the time anyway.
I've just check my own timeline, and can confirm this is the case.
Personal Facebook messages that come through the inbox are still safe.
EDIT: I have it set so people can't read what others post on my timeline anyway.
Just been on my other account and checked my main, all my wall posts by friends are still hidden.
Hoax bin with ye! lol.
2nd Edit: I rest my case....
Facebook private message rumour is 'false'
edit on 24/9/12 by woogleuk because: (no