Following the path of the venerable tinyurl, http://Tinyarro.ws takes advantage of unicode to make things very, very, very short.
For example, this blog's URL would be http://➡.ws/콢
As you can see there is a tiny arrow (thus the name of the service) and a seemingly korean character.
The domain name is legal, that's just a one-character unicode name, which seems to be legal according to the rules of the ws TLD. Then a unicode path, again just one character.
Since unicode has several thousand glyphs, it is possible that about a trillion URLs could be done using only a 3-letter path, which is pretty awesome.
Of course you probably can't type the damn things, but you can copy&paste them.
If any of this doesn't work for you, get on the unicode wagon already!