I’m a little late on this but Google Friend Connect was retired on March 1st 2012.
I only realised that something wasn’t quite right when the Google Friend Connect widget stopped displaying on my blog pages. My first thoughts were that it was a problem with my browser (Google Chrome) or my AdBlock extension.
After some searching online I discovered that Google posted on their official blog regarding this topic in November 2011. I also found a more useful support page which looks like it was created more recently
Google seem to be suggesting that “GFC” users should create a Google+ page as an alternative. However, one of the features that I liked most in GFC was the newsletter feature and this is not available in Google+.
I do have a Google+ page (the link is at the top of this page) but I won’t be using it to replace Google Friend Connect.