My buddy Yee Lee (formerly of PayPal, then Slide, now an EIR @ Venrock) has an interesting post on how to think about viral metrics for social networking applications, called The Four Viral App Objectives.
Along with Jia Shen from RockYou, Yee was one of the team coaches we recruited to help teach our Facebook class at Stanford last fall. Yee & Jia were responsible for educating the class on a number of viral techniques, and how to apply metrics to app development. These tips were a big reason why several class apps acquired over 1M users in just a few weeks.
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