The way that Tofu explained connects them, but I don't think it is through Bloo
I use the HTC Droid Eris and I have been going through my friends on bloo/FB, going to the info page, menu, merge contact. It will put their full FB name in your contacts I don't think it does photo albums (tofu's way does...I think). It's a bummer cuz you have to do all of them individually. I can't really figure out an easier way.
Side note: I think the FB profile picture is the trump all for pictures, I had Gmail pictures set for everyone and they all changed when I merged FB with their contact.