Here are some details on the features currently included:
Converting Twitter usernames - Again, using the Twitter API, all of the Twitter usernames in your stream (@name's) are changed to the account holder's real name. Due to restrictions with the amount of of times each user can access the API per hour, if you have more than 100 friends or if you have already created a MyTweetedLife.com journal in the last hour, this feature may automatically be turned off.
Converting Twitter conversation norms - Any tweet with a properly formatted retweet (using RT or via) will be converted into a quote. For example, 'RT @name - what they said.' will be converted to ' "what they said" - real name'. This works with multiple retweets in the same tweet.
Conversations are removed - As a way to clear the clutter, any @replies will be removed from your journal. In the future this will be an option that you can disable.
Emotional tweets are emphasized - Your tweets will be analyzed and searched for an imbalance of positive or negative mood keywords and emotes. If the tweet is determined to be emotionally strong, it will be emphasized.
Sloppy spelling leads to sloppy tweets - If more than 25% of the words in your tweet are not recognized by the dictionary that entry will appear sloppy. This is only sometimes effective since most names and proper nouns will not be recognized by the dictionary.
Images are imported - If your tweet contains an image from twitpic.com or yfrog.com it will be imported into your journal. Currently, no other formats are supported.
Currently you're limited to a sample set of your first 400-600 tweets, but I plan to open this up in the future. And of course, NO personal information is saved. No account information, tweets, or images. Once you leave the page, you'll have to reload everything.
Why do I need your password? Twitter limits the amount of API calls each account makes to 150 per hour. In order to get all of your tweets I need to make anywhere from 2 to 12 calls. On top of that it takes another API call for each different @name that needs to be replaced. If I used my own account to get this information I'd only be able to create 2 or 3 journals an hour. By entering your password, I'm able to use your account for all of the API calls and take the load off of my account. I've optimized it so that you should be able to generate your journal at least a couple of times per hour (though you shouldn't need to). I know that people have twitter clients that utilize the same API, so if at any time your API call count drops to 50 I suspend the @name feature. And remember, that your count resets ever hour. You'll never run out!