From our experience it certainly does.
We have introduced it on many of the forum that we host here at Web Wiz and have found that traffic on those that have it has increased.
Also what is particularly noticeable with the larger forums is that searches on search engines like Google the sites tend to come up allot more often and higher in the searches.
This is beceuase if search terms are in the URL then search engines will place more weight on them, which is what the URL Rewrite tool does.
If your current host doesn't supply URL Rewrite tools then we can supply these on our hosting packages and we also have a range of forum only hosting packages called our Community packages if you wanted to keep your main website with your present web host.
Click here for more info on hosting packages
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