Day 3 is over (after what seemed like a much longer day). For those of you who spent all day in the lounges or in line for drinks at the Block Party (#9), here is what you missed:

• There were some great panels today on social media (beginning to think the phrase of the week is “social media”). Twitter still seems to be the champ with marketers, though many of them still seem like they haven’t reached their best practices with it. Someone mentioned to me after a panel that they hadn’t heard MySpace brought up at all which surprised them (didn’t really surprise me). I told him I though the reason was it was organically heading back to it’s core of music promotion and discovery, plus a ton of teens and tweens adding sparkles to their modules. But what do you all think? Why has MySpace been seemingly absent from these all important conversations on “social media”?

• Anyone else need a chiropractor after sitting on the floor through panels? I felt like it was story time in those core conversation rooms. Would chairs have really made that much of a difference in the number of people they could jam into one room? I’m getting too old for this…

• In years past at the Trade Show, there has always been one booth that has had a free beer happy hour. Pretty popular. This year, SXSW decided to have many MANY booths with a happy hour today, calling it the Block Party. Saturday at 4, the trade show had moderate traffic. Today during the Block Party, it was crazy busy. I overheard someone say, “It’s amazing what free beer will do for a trade show.” I’m not sure it helped the participating booths at all because everyone was just looking for the best mojitos and beer offerings, not necessarily paying any attention to the companies distributing the drinks.

• Mr. Spam (@MrSpam) arm wrestled Jungledisk’s (@Jungledisk)Pink Gorilla today on the East Balcony. I missed it because I couldn’t find the East Balcony (darn that convention center!) Who won? Anyone got pictures or video of the beat down?

• Did anyone attend the keynote today? Who was it even? For those of you who missed the Tony Hsieh Zappos keynote yesterday, here is a graphical representation. I think most of us today were either trade-showing, lounging, or at the ever entertaining and “ooh and ahh”-ing Adobe Panel: Getting the most out of CS4. Holy cow, it is amazing what advances have been made from CS3 to CS4. Let me sum it up for you: Greg Rewis had PS, DW, FW, and FL running on a laptop at the same time. There were many a speechless designer in the audience. (Too early for a Christmas wish list?)

• The Web Awards were tonight! You can tell it’s day 3 when the drink line is shorter than the food line. Priorities change when you are recovering from recovering (could be most got their fix at the Block Party). Food looked pretty good though, the lines were just too long and the plates too small for me to partake (and what were those green noodles!). Congratulations to all the winners!

That’s all for day 3. Keep following us on Twitter @OneSpot and grab our widget for the latest in SXSWi news!