I think both of your example is effective, as long as it is unique from everyone...

The industry standard (has been this way for some time):
Keyword 1, Keyword 2 | Brand Name

Now if the page is only optimized for one keyword you might be better off doing:
Keyword | Site Name (or Brand Name)

This of course is dependent on the length of the keyword. Good luck!

Keyword | Site Name

this is a better choice....

I've found it better to write a title of a page that attracts a user's attention in the search results. You can get a boost in CTR if you write your title to answer the searcher's query.

My title still mentions the targeted keyword but I don't try and fit in other/related keywords. I don't worry about diluting it either.

I think Google can show up to 70 chars now. A long title can stand out quite nicely

Brad's example above works very well and the only other thing I would add if you have the room of course is possibly adding a brief call to action rather than a brand name. This can improve CTR if done properly, but in an instance where I want to keep the brand recognition and don;t have much room left I usually go for brand name instead.

As for dilution, there are no worries there, however the keywords further to the left seem to carry more weight then words further to the right so I would keep the most prominent keyword/phrase you want to rank for closest to the beginning.

Keyword 1 | Keyword 2 | Site Name

this is better choice i think

keyword1|keyword2 this would be better choice to use

Very small title is not good

Keyword density within individual HTML elements like <title>, <h1>, <h2>s, anchor text, etc. is very important. Keyword density within the main content of the page is no longer as important as it once was, but within elements like <title> which are themselves ranking factors, the importance of keyword density gets greatly magnified.

Generally speaking, each page on your site should be targeting a particular keyword phrase. I typically target 1 keyword phrase for a page in my title and then use variations of link text to rank for lots of slight variations of that phrase. I'll include 2-3 phrases in the title if they are almost identical in meaning and keywords (like "Refinance Loans - Mortgage Refinance -Refinance Home Loans").

Short titles are NOT bad as the previous poster said. I have tons of pages that rank #1, #2, #3 with a 2-3 word title... one keyword phrase. I've used this technique on everything from PR0-PR7 sites with a LOT of success. There is nothing wrong with short titles. They are very focused. Adding additional "fluff" words that are not part of your targetted keyword phrase(s) to the <title> element actually hurts your page's ability to rank for its targeted keyword phrase(s).

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