That's the original meaning. The term was picked up by a group of writers to mean the process by which a person from a "fictional" source -- books, movies, games, etc. -- becomes mentally and emotionally connected to a particular person in the world-at-large.

There is a discussion on this at
http://www.livejournal.com/community/soulbonding/154425.html
which may further enlighten things.

(Gotta love that girl's icon. - Jay)