Is there a way that you can set the albums to only be viewable by friends? Is there a way to make the WHOLE profile viewable by only friends/contacts?

Yes, I think you can have your albums set to private in which only your contacts and site moderators may view them, but I don't think there is any way to set your entire profile private.

Where do I go to set it?

It's under your Account:

Account > Networking > Pictures & Albums

Just click on it and create a new album; then you'll be able to select the privacy options for that folder.

Ohh okay, I got it. Thanks you :]