Danny Sullivan's Analysis: Which URL Shortening Service Should You Use? has an excellent overview of the various URL shortening services available. In Danny's write up, he goes over about 15 different services and rates them based on how they handle the following:
- Redirect
- Tracking
- Client Support
- Domain Chars
- Custom URL
- Sharing
- Path Chars
- Total Chars
- Country
- Service
There is some very good discussion around the piece at Sphinn and in the comments area in the article.
Forum discussion at Sphinn.