FERPA - funny name, serious discussion

This is a response to Dr. Terri's blog post:
This recent post in another's blog discusses the issues of the Family Educational Rights Protection Act. Which protects students' privacy when it comes to academic records.  Read the article (and perhaps refer to the links on what is FERPA at the bottom) and develop a plan for having students share content in online format like blogs and wikis. 

If FERPA limits the amount of information that schools can share concerning student records, the first question that comes to my mind is, "What CAN be shared?" The blog's article stated that certain personally identifiable information or pictures can be open to the public. Another aspect that concerns/interests me is that online social media "may not be FERPA-protected because it has not been received and therefore is not in the custody of the university, at least until the student submission is copied or possibly just reviewed by the faculty member” (NC State FERPA Guidelines). Does this mean that blogs are not protected unless they are graded? Or unless the professor posts feedback on the blog itself? I'm a little confused about this, so any insight is greatly appreciated.

With the information and current understanding I have, here is my plan for students:

1. Get parent permission to use a blog, and, with it, give a description of information that their student is not allowed to publish. Give them information about what a blog/wiki is, what it means for the classroom, and the ways in which students' information will be kept private. Additionally, I feel like the parent waiver should include a section on what the teacher will and will not be held responsible for in the case that a student posts personally indentifiable information.
2. Have at least one class that covers what students are and are not allowed to publish on their classroom social networking page. This includes information on netiquette, as well as what personally identifiable information to avoid posting.
3. Have students sign a waiver that says they have participated in the training lecture and that they understand the guidelines for the site.
4. Maintain an updated rule page that students can access anytime they are online. The rules would cover the types of information that would be considered personally identifiable.
5. With the students, develop a plan for how to respond to a violation of the rules. Some students/classes may decide that a violation would result in the site being shut down. Others may think that too harsh and have a warning process instead.
6. Continue throughout the year reviewing the guidelines and reminding students of their importance. As a reminder, provide another waiver for parents and students at the beginning of the second semester. It may also be beneficial for parents/students to have a way of anonymously reporting violations. That way, they feel like they have some participation in the process.