Maintaining good relationship with children of generation Y.

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I really noticed the big change in my daugther's behavior when she turned seventeen. Since i am a democratic parent, i always allow her to enjoy the opportunity of choosing her friends and her activities. Good thing she always tell me who her friends are, what activities do they have, and where do they go as this was part of my parental rules. However, recently i observed that she has widen her cicrle of friends, from her classmates she now establishes friendships with the friends of her classmates who are members of small groups prone to engage in "gang-like behaviors. These teenage girls and boys are typical of adolescents in their "storm and stress" experiences who are fond of parties, loud music, boastful voices, rowdy actions and engages in counter forms of activities like tatooeing thier bodies, emotional dressing, graffiti- spray painting on walls and establishments, cutting classes, drinking and the likes. And since my daugther is always with them she is kind of influenced by their behavior. What im doing now to still maintain a good relationship with my daugtehr is im showing interest also with the kind of groups she has even to the extent of listening to their problems as told my kid. But its kind of a difficult thing to do considering that i also belong to a different generation. So how do u maintain good relationship to your generation Y (1980- 2000) children?