I am building a niche community site, the initial choice of software is Drupal. is it good for social networking application?
In short, no. Drupal is primarily a content management system. If you are looking for open source social networking software, elgg is alright, but for the most part, you are going to probably want to write most of your own code.
If it's a niche, by all means use Ning -- http://www.ning.com/ -- why reinvent the wheel?
My 2 cents if you don't want ning (it's free but it's theirs) Drupal lets you create your own: http://drupal.org/
Yes, I've written a step by step tutorial on how to set up a social network with Drupal on book.drupalfun.com
Drupal 6 Social Networking is a new book that will guide users in creating and managing their own social networking website, using powerful and feature rich social networking modules. Written by Content Management expert, Michael Peacock, this will help users in promoting and marketing their website using the Drupal CMS platform.
drupal allows user memberships out of the box and there are good modules for groups and buddy lists available. that seems like a good start of a social networking site to me.
It's totally possible. And the best thing is that you can go way beyond social networking classics because of the flexibility of Drupal.
Get an integrated ebook tutorial here: Ultimate Community Site Guide. You can download the packed site of drupalfun as well here.
Drupal is a good choice. Check out the Organic Groups module. It allowes you/your members to create groups, post messages to that group, create group-polls, anything you want.
Next to Organic Groups, there are a lot of modules building on top of OG to deliver even more functionality. Check it out
Edit: I found a Podcast: Organic Groups Basics
Yes Drupal is more than capable of creating a socail network. Heres some sites I've built using only Drupal (both 5 & 6).
So yes, Drupal is a content management system, but it also allows you to expand on that very easily and create a powerful social network website, just how you want it, not based around someone elses framework.
http://www.bankeyfields.co.uk/ - Hyperlocal site, for people in Tunstall. Multiple users, Private messages, buddies, users can post images to a gallery, comment on any post, post blogs, forums.
www.campaigncentral.org.uk Campaign Central - allows users to build campaigns, linking back to their twitter, facebook, website. Users can join other users networks, send private messages, write blogs, post images, attach you tube videos.