TechCrunch claims AOL is working on a MySpace-like social network called "Head On". A launch may follow within a couple of weeks:
This went from rumor to “confirmed likely” in posts and comments by Jason Calacanis and Jordan Running (also here) (both now at AOL). A comment in the last link suggests that the new service will be open to non AOL members.
This market is red hot. Mature players like Facebook and Fox-owned Myspace basically own their respective categories, and better-featured (and funded to the hilt) newcomers like Tagworld and Tagged gunning for the big guys.