I believe the foe part is something like: User x pisses you off. Everytime User x says anything, your blood boils no matter the topic. You really just wish User x didn't exist, so you make them a Foe. Now when User x jumps on your classified ad or pulls his usual crap, you simply don't see his posts- as if User x never existed.
Until somebody quotes them...
Friend lets you make some kind of friend list, maybe you want all the PNW people on your friends list so you can remember who to hit up for trips and who is close. Not sure what else it does or how it works.