mantucket - 5:51 am on Jun 10, 2010 (gmt 0)
I just did an experiment which disproves the title-exact match theory. I still have a page that ranks #1 for:
"blue widgets electrical"
The first 3 words of title are exact match.
A competitor ranks #2 for the same phrase, but his order is "Blue electrical widgets"
If I switch the keywords in my search to "Blue electrical widgets", he now ranks as #1 and I have #2.
So this is a very isolated case where google is clearly paying attention to title exact match for both #1 and #2 slots.