A mini-drama of particular interest to bloggers unfolded in the midst of the hoopla surrounding Alaska Governor Sarah Palin’s resignation earlier this month. When a false rumor surfaced that she was stepping down because a federal investigation had been launched into possible illegal use of state funds, Palin threatened to sue a blogger who had repeated the scuttlebutt. The blogger was not cowed — and rightly so. She had the law on her side. Still, the incident raises questions about what it is permissible to say and do online in a Web 2.0 world.