Yes, people love to gossip and some people feel work is their social hour. I also try to keep my personal and work life seperate. I do have some friends at work, but my closests friends are outside of work. I'm also shy too, so I don't sit and 'gossip' like alot of other people at work. Sometimes, I do feel 'left out' of the social gatherings, etc....but I know I am shy and serious at work. I'm alot more outgoing outside of work when I am with my friends and family.
I do agree with 'lost soul' smiling is a good gesture; I do try to say 'hi/smile' to a lot of co workers while I'm there, most are receptive to it and happily say 'hi.' back.