Just released 1.2beta version of Twitterify plugin. Twitterify allows you to easily create hash tags, @ author links and auto-link url‘s easily without any html code. It is perfect for micro-blogs. The new update has an options page and it allows you to hide/show hash symbols.
You can also select where to link hashtags now: a search page, a tag page or a twitter search. If you like micro-blogging you are gonna love this! Visit plugin page here.
Here is a screenshot of the plugin options page: