SEO implications

As google bot doens't use javascript it will bypass ajax features and index the site as any Drupal site.

The # in the URL is for history management (back/forward browser buttons) support.

And this is done by asynchronous module, not chrysalis theme.

I would still be best to figure out a way to render the pages without the #, the search engines are getting more sophisticated all the time, it won't be long before they start processing JavaScript. I'm happy to get involved with testing from an SEO perspective, I'm not a dev but an SEO, and the anchor (#) links do concern me long term.

Reopening so that my previous comment is read.

This approach is broadly used. Even google uses that in gmail, orkut, etc.

If you know how to make dynamic loaded pages bookmarked and back and forward buttons to work without the '#' please let me know.

It's simply not possible to change the URL, without redirecting the user, so e.g. if we change url to http://site.com/node/123 using javascript it will redirect the user to that URL and will by-pass all dynamic loading functionality.

Even if bots start processing JavaScript I think there will be a way to set that not to, e.g. through robots.txt.

As of now, search engine bots will just see you site as if you were with JavaScript disabled.

URLs are not changed in anyway server side.

I agree with recidive on this one: lets focus on more important issues right now. Google and many other big websites are using the same (very useful) technique for history management.
Currently there is no way to change the url in a browser through JS (and this is a very very good thing) other than the currently used method.

Marking this as fixed.