Interesting concept ... I like it. URL shortening is definitely something early tech adopters use a lot (I'm not sure about the average Internet user).

You've definitely spelled out the benefits on the home page–but I'll be totally honest: the website design is pretty bad. Simplify, get rid of that laser beam and handwriting font, and clean up the page.

I think you could do some creative things to get traction ... for example, create a FireFox plugin that cligs the current user's URL and posts it to Twitter, Digg, or WordPress. Anything like that which makes it as easy as possible for people to use the service will help adoption.

As for a business model, be creative as well.