The market is definitely harder for the FSBO now, and that's good news, but the bad news is that the "Do-It-Yourself" mentality is still alive and well in the U.S. We all suffer from it. Sometimes it's a need to save money, hoping that the bottom-line will be higher if we eliminate the middle-person. Sometimes it's a prior bad experience. You can make some headway though; here's an article I wrote a while back (in the seller's market, but it still applies) that can help you approach the Unrepresented Seller (sks FSBO)
Also, I recently ran a teleseminar on this same topic - you can listen to it here, for free: Staging a Successful FSBO Campaign.