OK - I'm a little paranoid ... I did everything as above ... I went to the Android market and downloaded the Facebook for Android app ...
Upon launch, it asked me to login, so I did .
The next screen was a "how to get the most out of Facebook', etc ... (ie. add the widget to your home screen, etc) ... pressing the "Menu" button on this screen did nothing but bring up the keyboard.
Clicked "Finish" and it took me into the Facebook ... click on "Menu" this time, and get "Settings" ... but there is NO MENTION of sync'ing friends?
BUT - the good news is .. it does NOT seem to have imported my facebook friends??