What I did, was edit my category links, so that they were php files by using code like this:
Code:
<?
$cat = "15";
include "./home.php";
?>
I then edited the categories.tpl to include these.
I then edited all of my product links, including my products.tpl, best sellers list, etc., etc., to change product links to something like this:
Code:
<a href="/product/{$products[list].productid}/{$products[list].product|replace:" ":"_"}.html">
This creates a link to the product using the product title as the file name.
I also created a full page product listing, that grabs all of the enabled products, and lists them on 1 page, with links to their static pages, and put a link to that page on the index page. Most important thing to remember, is not to have your index page as a redirect.
Doing this we've had success with search engine spiders.