Keeping URL's short is becoming important. It began years ago with tinyurl.com, mostly because email clients were chopping URL's that wouldn't fit on one line. Text-messaging/SMS sites like Twitter have intensified the need for keeping things short.
From Stan James - the founder of Lijit.
Full Story: http://wanderingstan.com/2007-12-05/geekout_how_to_make_short_urls?