I don't generally self-promote but I've written a series of blog posts about handling privacy issues. Check them out. I'd love to hear your feedback on whether you found them helpful or not.

http://jnorthrop.me/2012/04/15/privacy-best-practices/

http://jnorthrop.me/2012/04/7/preparing-data-breach/

http://jnorthrop.me/2012/04/3/getting-your-privacy-policy-gr...

http://jnorthrop.me/2012/04/22/privacy-and-our-humanity/