Now with Web 2.0, the trend is AJAX, there are many existing frameworks on the market promoting AJAX, but is AJAX really SEO friendly?
The Google AJAX API loader makes it easier to use multiple Google AJAX APIs on the same page and unifies the namespaces across them. Instead of adding a separate script tag for each API, this loader gives you a common way to load multiple APIs at once.
The jQuery library is SEO friendly. You get to decide the way you want to code your site. But how you do, it has a significant impact on its appearance on pages such as Bing and Google among other search engines.
JavaScript SEO is a part of Technical SEO (Search Engine Optimization) that seeks to make JavaScript-heavy websites easy to crawl and index, as well as search-friendly. The goal is to have these websites be found and rank higher in search engines. Is JavaScript bad for SEO; is JavaScript evil? Not at all.
Yes, it is a lot harder to make a search-engine-friendly AJAX site. It's probably worth the effort to make your website work to a base level without Javascript for the sake of search engine crawlers alone.
No, it is not impossible for a search engine to crawl your AJAX site (so long as that search engine is Google). You just need to give it a bit of a helping hand: see Making AJAX Applications Crawlable on Google's support pages.
Note: this answer is now very much outdated. Google still provide good advice for how to deal with this -- and it's easier than it was.
No, Ajax is incredibly SEO-unfriendly, as spiders, etc. don't execute any of the Ajax calls.
However, Ajax should really only be used as a means of improving the user experience - there should always be a base level of functionality for SEO and (more importantly IMHO) in case the end user doesn't have JavaScript enabled.
In other words, if the user can make use of Ajax by all means use it to improve their experience, but they should still be able to fully use the web site without JavaScript. (It's all about "graceful degradation" and all that.)
Remember to put href params in [a] tags pointing to similar server side functionality. This way the content can be indexed by bots.
This article might be usefull:
http://www.singlegrain.com/blog/creating-an-seo-friendly-site-using-ajax
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