Shortened links work with vanilla SharePoint installations.
Tested with:
SharePoint 2007 folder links
SharePoint 2010 document links
If you’ve got a link that doesn’t work, add it to the comments and we’ll try and fix.
Based on a Blog article from Sean Earp:
http://blogs.technet.com/b/seanearp/archive/2010/07/09/long-url-s-in-sharepoint-2010.aspx