New Plugin: EE Shortener
Simon Collison realizes the major shortcomings of the dozens of URL shortening services out there: the life of those short links are out of the hands of the content creators to whom they link. So, he’s doing something about it.
Today he release a new plugin called EE Shortener, which allows you to create your own short URLs right in ExpressionEngine. Simon provides explanations and sample code to get you started.

I downloaded, installed and tested this plugin and it works as described. It’s free and available now for download.
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luxuryluke — 10:54 on 04.14.2009
Yay! Moving things forward. Two thumbs up.
MarmaladeToday — 03:32 on 04.18.2009
Looks like Paul Burdick has something along these lines in the works too:
http://fierytea.com/docs/expressionengine/extensions/shorten_urls/