From Don K. Ferguson's Grammar Gremlins column (5/22/05):
When using the verb "graduate," it's important to remember that the student is the one who moves on, not the school, according to Wilson Follett's Modern American Usage.
Therefore, the student graduates from the school. He or she does not graduate the school. The student, not the school, is the one affected.
In the mid-1900s, expressions like "she graduated Harvard" (omitting the "from" after "graduated") became somewhat popular and continue to be used today, but handbooks label this form as poor usage.
The expression "was graduated from" is also seen today, but it's a bit old-fashioned and is used mainly "in wedding announcements and obituaries," according to Bryan Garner's Modern American Usage.