Switching a site-with-dashes.com to SiteWithNoDashes.com

is 301 redirect the best way

[stinky]

My client has a 3 year old website called Widget-1-2-3.com but they really hate the dashes and want to switch it to Widget123.com
Widget-1-2-3.com is ranking on the search engines and Widget123.com is a brand new domain.
My question is should i 301 redirect all visitors going to Widget-1-2-3.com to go to to Widget123.com
OR should i 301 redirect all visitors to Widget123.com to go to Widget-1-2-3.com and just change the web page logo to read Widget123.com?
If i go the second way (keeping Widget-1-2-3.com) how would it work when requesting a link exchange? Should i tell people to link to Widget-1-2-3.com or Widget123.com.
Any ideas or information is appreciated.

[g1smd]

Moving to a new domain will lose all your accumulated "age" and "trust" for many months, and some rankings for a while.

Whatever you do, one domain needs to issue a site-wide 301 redirect to whatever domain you choose as being the canonical domain.

Only one domain can appear in the SERPs. Trying to do anything else would otherwise result in Duplicate Content problems.

[stinky]

Thanks, one more question
If on Widget-1-2-3.com I put my client logo for Widget123.com and i am requesting link exchanges, do you think this will cause a problem (confusion with other webmasters) because i would be asking them to link to Widget-1-2-3.com when the site logo says Widget123.com.
Note: the domain name will be switched to something with a theme instead of the generic domain with dashes.

[g1smd]

It doesn't matter which one they link to, as the redirect gets the traffic to the correct site in the end anyway. Pagerank is also passed through a 301 redirect.

People will mostly cut and paste the URL from their browser, and that will be the correct one for them to use. If a few use the wrong one it will not be a disaster.