Default WordPress settings provide a reasonable level of SEO utility. Compared to a static tables-based site or a Flash site, even the default settings are substantially more powerful. Configuring these settings maximizes the SEO potential of WP.
Permalinks control the URL structure of the content on your site. The default structure (http://www.wordpressandflash.com/?p=123)should not be used. Instead, configure shorter "pretty" permalinks that describe your content.
To update, configure permalinks that create user friendly SEO URLs. Take the following steps:
1. In the WP dashboard sidebar, click on Settings | Permalinks.
2. Click on Day and name.
3. Click on the Custom Structure field, which will now be loaded with the following:
/%year%/%monthnum%/%day%/%postname%/
4. Truncate this to the following: /%postname%/
5. Click Save Changes.
For more information, visit: http://codex.wordpress.org/Using_Permalinks