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Wow, it's true! That's cool. I checked it with liveHTTP headers and it 301's perfectly. Not only that, but if you happen to write a post with the original permalink, it removes the 301. And, if...

hmmm, I'll look into it a bit more, I've actually got a site I can play with and see if it gives a 301. I was pretty sure it doesn't but it's worth a look, just to double check.

That's what the 301 is for, it tells google that these pages have moved permanently. My experience shows a couple of weeks for the new urls to show up in the index but the old urls remain and all...

That's actually incorrect, Nat. Wordpress will auto-redirect everything but there will be no 301 redirects in place. Wordpress will, however, redirect a 404 to a similar page but there's no 301 in...