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I personally would use the real title as the first 30 characters or so. Then I would use the rest of what’s left of the 80 characters that you’re allowed with something that reflects another keyword as long as it sounds good. Then again it really depends on the field your. Some fields are harder to come up with the perfect title and domain.
I would have to disagree with you on the maximum number of characters that can be in a title. Unless the rules have changed the maximum number of characters you can have in a title is 80. The most characters that Google will display are about 65, but that doesn’t mean that the rest of the characters aren’t being counted in the value of the title.
The next operating system coming out of Redding is giong to have a search engine built into it. To me it looks like a repeat of the Netscape thing, when Netscape had 80% market share and MS claimed that they couldn't remove their browser because it was built into their operating system. Now, they are going after Google with essentially the same plan, build a search engine into their operating system.
Anyway, regardless of whether or not you agree with their tactics, it seems clear that MSN will own the search industry in a few years after the longhorn release. And for that reason, I would optimize something unchangable like the name, by the MSN standards.