Yeah it's true. I don't know why people are trying to make out it isn't.
It is perfectly logical that it could happen. Facebook will make a log of who you looked at, and will save the information. And then your profile will pop up on that person's 'people you may know' list.
Ebay does something similar; it makes a record of everything I look at, even if I don't put it in my 'watch' list. It still says 'items you looked at.' So why on earth would facebook not do the same?
I have had a snoop at people I used to know, and lo and behold, their friends (and them) have come up on my 'people you may know' list the next time I log in. It retains the information. And there is a very real chance that your name will come up on THEIR 'people you may know list' too. It's very naive to assume it doesn't.
Some people who I don't know often pop up on mine, and they may have been stalking me/looking at my profile - OR it could be we are just be linked by mutual friends.
I have, however, had several people pop up (from the past) who are not on the friends list of ANY of my friends. I suspect they were stalking me and I block them.
If you wanna stalk someone, make a fake account with a fake name, or they will almost certainly know you have been stalking them.