It finds these people based on "your existing connections", but we don't know how it decides the order of the list. Our guess: the more people you both know, the higher on the list the person gets placed.
We didn't recognize any of our first four suggestions (pictured above), but the profile we used to test the feature is not heavily used. In contrast, Harrison Hoffman at CNet seems to know or have met most of his suggestions. It would make sense that Facebook profiles used more heavily will produce better results.
[via CNet]
