We've often heard horror stories of people who've been burned because of a blog post, Facebook photo or Youtube video of them doing something embarrassing, it being discovered by their boss and them getting canned over it.
People should realize by now that their online presence in the public domain can be detrimental if left un-managed. However, the other side of the coin is that a well managed online identity can bolster your image, especially as a recruitment tool.
While most applications for jobs and competitive opportunities limit your application materials (2 page resume / CV, cover letter, essays, etc) it is beneficial to have a strong online presence to supplement your materials. Without the restrictions of a standard application package for example, including a website can stretch the valuable time a recruiter looks at "You" (your personal brand identity) from the standard 30 seconds before you are placed in the "blue bin" filing system to maybe that extra few moments in which they decide you're interesting enough to call in for an interview.
Some particularly good examples? Check out Jamie Varon's twittershouldhireme.com which only started on March 9, 2009. Although she's placed all her eggs in one basket so to speak, she's already got a fairly large following (she explains on an online interview that she was one of the top followed uh... twitter-ers).
In her example, she had a unique and bold idea, great execution and strong social networking / advertising. Her story is in it's interim stage as she is being called in for an interview by Twitter, but her fan base has its fingers crossed for good news.
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