Is link cloaking software easy to set up? How effective is it, generally speaking? Can anyone direct me to a place on the web with good info on this topic?
Is link cloaking software easy to set up? How effective is it, generally speaking? Can anyone direct me to a place on the web with good info on this topic?
what is the purpose of cloaking? if for SEO purposes I would say avoid it
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If you run an affiliate program you may have noticed that some of your affiliates use a practice known as “link cloaking.” Link cloaking is a method used to make a long affiliate URL link into a shorter and prettier one. It's different from cloaking (black hat SEO)
I'm using this following plugin to help link cloaking on my blogs
WordPress › Affiliate Link Cloaking « WordPress Plugins

I would always suggest referring back to the Google Webmaster Guidelines if you aren't sure if something is "kosher". You might get away with some tricks for a while, but eventually they will catch up to you!
In that case then bit.ly and some of the other link shorteners will qualify for link cloaking
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Amazon does have its own link shortening service, amzn.to , which you can use by entering an Amazon link at http://bit.ly.