Does the use of keywords in the url help in rankings? For example if optimizing for "divorce lawyer" is the url mysite.com/divorce-lawyer.html better than mysite.com/2.html?
OK, will I get a penalty if the words used in the title appear in the URL. For example if my page is "divorce-lawyer.html" can I use the words "Divorce lawyer" in the title?
These titles do not penalise you, as they even affirm the page's topic. It's only advised not to repeat the same keywords too many times on one page.
Personally I have found 3-5% as the golden density % for a keyword throughout the whole page. If you overload the top make sure you don't overload the middle or bottom know what I mean? Find a density checker and you will Shake that Laffy Taffy ; I had a site no backlinks optimized it and was getting 40 uniques a day in 1 week. NOthing to brag about but worth mentioning. I had a 3.5% density.
I agree with Vashal, most generated content pages put out by BlackHat SEO's use that format with the page-title.html and Page Title as the title. Mix it up a bit. I'm also a bit superstitious, but in the end what matters is your content and your backlinks.
I would also suggest to use some different combination of base keyword. You can switch around the order of your keywords. As for the original question, keyword in URL is one of very basic on-page SEO and a pretty strong factor. Quality backlinks are more important though.
Yeah changing your pages to keyword.html plus in the title is mostly recommended. My SEO guys tell that to me so I am telling it to you. Where can you find out about the density checker. I want to know about that. All the best! Easy Ebook Man, easyebookstore.com
A couple of random examples "forum snowboards" http://www.google.com/search?q=forum+snowboards #1 listing Title URL Page Content "dog food" - http://www.google.com/search?hl=en&safe=off&q=dog+food #1 Listing Title URL Page Content "paradise island" - http://www.google.com/search?hl=en&safe=off&q=paradise+island Title URL Page Content I think it's safe to say, yes, title, url and content.