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So it actually comes down to a matter of aesthetics and what you believe your target audience will more easily remember.
So whichever you own, purplepeanuts.com or purple-peanuts.com, at this point in the game, it comes down to optimization.
How does that work when the words can be interpreted differently?
For example, let's say I set up a site for people to sell or exchange parts for cars. partsexchange.com
Will Google see it as Parts Exchange or Part Sex Change?
Also what about WindowsLive and Yahoo, do thet resolve a domain name in the same way?
If you run a search on partsexchange, Google finds partsexchange.com and places it at the top. But as an alternate query offer, it asks 'Did you mean: parts exchange'
If you run a search on part sex change, Google returns results related to sex change issues. G does not come back as ask you to clarify with an alternate 'Did you mean' question.
Three word combinations don't seem to trigger the 'Did you mean' alternative.
Search whitewedding vs whiteweddingday, etc.
So Gary, the hyphen question, needs to be restricted at this time to two word combinations.