From the NY Times today

Craigslist, the Web’s largest classified advertising site, said on Wednesday that it would close its “erotic services” category, which critics have said is a forum that facilitates prostitution and other illegal activities.

To replace it, the company has created a category called “adult services,” in which postings will be reviewed by employees who will look for indications of activity that is illegal or violates the site’s guidelines.

Craigslist has been under increasing pressure from officials in several states, as violent crimes involving people who made contact through the site have made national headlines. But the changes did not appear to go far enough to satisfy everyone in the growing chorus of Craigslist’s critics.