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Bit.ly launched a URL-shortening service for Gmail that allows users to send long URLs through emails. The service adds a shortener module to Gmail’s sidebar. To install the Bit.ly gadget you need to have Add any gadget by URL option enabled in Gmail’s Labs section after which you can add the URL to the Gadgets tab in Settings:

http://hosting.gmodules.com/ig/gadgets/file/107368512201818821991/bitly-shortener.xml

The Bit.ly shortener will then appear on your sidebar as shown in the clip above.