***Edit*** Nevermind. Seems kind of silly...if you don't check this box their posts show up like normal, even though they are on your friends list. Kinda silly to ignore someone yet have the option to still view all of their posts.
Curt, I think there is a way to hide those posts.
Go to your profile, then select Look and Layout. There should be a box to check in there, "Hide messages posted by members on my ignore list". I don't have anyone on ignore but I'll put someone there and test it.