I am reallllyyyy not comfortable with revealing my real identity on sign-up to a new website. It admits me to consequence in a lawless zone, full of wankers, that never forgets.
Also, I google everybody, whether because I am reviewing your cv, or because you are a friend of a friend. Facebook connect is a definite no-no.
The problem with the likes of friend.ly is that it forces me to use the email address associated with Facebook and it's PITA if you use multiple email accounts / filters for multiple purposes
The problem is nothing is editable (full name, birthday, location, email -- ok, they can have gender). If I'm signing up for some brand-new, unknown service, I'm usually not inclined to divulge anything more than an email address with an alias (+newsite@gmail.com).
You might want try out our service (Spockly.com) to tackle this problem: it allows you to limit your sign up form to email (& password) and get the basic info like age, gender, location from us. So sign up is straightforward, but you still get some insight about your users. Of course, it only works with people who have public profiles on social networks.
The best signup flow is no flow at all. I liked a lot what Posterous did.
I don't remember signing up to posterous, so it must be pretty on the money.
Personally, I'd like the option of using another signup provider other than FaceBook.