Elgg is an Open Source (free) program to do just that, I have been reading a little about it in .Net Magazine and hope to have a dabble with it when I can. Elgg can be downloaded and run from your own server and then looks like it has a lot of the features of community sites such as MySpace, Facebook etc. I was looking into scripts like this a few months ago but then they were costing a few hundred dollars (and I didn’t know if they worked), but Elgg is free.
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Having a test of this in the next few days let you know how I get on
I thought about experimenting with this. There is currently a small group of Pligg developers that are trying to create a bridge between Pligg and Elgg.