Yesterday, Inside Facebook reported on a nifty MySpace feature called Fan Video that allows users to pull in their Facebook profile photos using Facebook Connect — a notable move given the sites’ longtime rivalry. Some other outlets ran with the story, with CNET calling it “hard evidence that MySpace is committed to using the technology on its site.” As it turns out, that probably isn’t the case: we’re hearing that this implementation was only integrated as a one-off for Fan Video, and that it is not indicative of a MySpace move to embrace Facebook Connect on a wider scale.

In fact, we’re hearing that MySpace hasn’t even decided if they’re going to implement Facebook Connect on a wide scale at all, despite the rumors that have been circling for months.

Fan Video was built as a promotion for the UK launch of MySpace Music in December. The app is simple: it imports your profile photo using either MySpaceID or Facebook Connect, and inserts it into one of a half dozen music videos from big name artists like Alicia Keys and 50 Cent. The results are actually pretty entertaining — I now have a video of Alicia Keys singing a love song as she gazes longingly at a photo of me. But we’re hearing that the app didn’t come directly from MySpace — it was actually built by a third party under commission.

In related news, we’ve recently heard that Twitter is close to launching their answer to Facebook Connect.