I am only going into my second year at SOM, but I sincerely doubt any of us SOM students will be adversely affected by this at any point in the process, including residency placement. As mentioned earlier, we do have a strong reputation as an educational institution and an impressive match most every year. And you're absolutely correct about our students showing the true colors of the school, by and large being some of the most generous, compassionate people I have ever known. Dean Cavalieri is an excellent interim dean, in my opinion, and it sounds as thought Dr. Vladeck will truly clean up the entire University. However, I believe it is the students who will truly carry the University through this and restore its good name.
It sounds odd, but in a way this does have a significant upside. Had there never been problems up north and we were never monitored as a University, the corruption of a few powerful individuals at SOM may never have been discovered. The publicity hurts badly right now, no doubt about it. But in the long run, I'm glad that we're "clean" going forward.
I'll be interested to see what kind of effect this has on applications next year. As for newly admitted students to the Class of 2010, I'm sure the administration will calm your fears during Orientation. The students and faculty at this school are too talented and diligent to let this hinder our academic mission.