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From what I understand, on some services (like google gmail) there is an upstream capture that collects everything raw for 3 days, in effect a rolling buffer. They store meta data separately from the raw data (data about data).
It has gotten bad where they spied on people to the 3rd degree, saying that if someone talked to a terrorist suspect, who then talked to someone else, that other degree of separation was enough for them to tap you.
If you don't like it just use a VPN (hidemyass etc) and use fake accounts where ever you go.
Listen to the security now Podcast with Steve Gibson, they discuss PRISM among others extensively now.
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