As most Wordpressers (Is that a word yet?) now, the default URLS generated by Wordpress is not all the SEO friendly. The Admin section gives you a way to change them, but the docs are a bit light.
After reading a bit on the subject, and googling around, I ran across this post on the subject. Nicely written and clear to the subject. Now my URLS are pretty and easy to read.
Another no-brainer operation in Wordpress.
How do you solve the URL problem?