Since we were involved in this case, I thought I'd note that the Supreme Court of California has ruled in the case of "Pavlovich v. Superior Court of Santa Clara County":
"Not surprisingly, the so-called Internet revolution has spawned a host of new legal issues as courts have struggled to apply traditional legal frameworks to this new communication medium. Today, we join this struggle and consider the impact of the Internet on the determination of personal jurisdiction. In this case, a California court exercised personal jurisdiction over a defendant based on a posting on an Internet Web site. Under the particular facts of this case, we conclude the court's exercise of jurisdiction was improper." Decided 4-3. You can find the decision at http://www.courtinfo.ca.gov/cgi-bin/opinions.cgi?Courts=S. Thomas