I very rarely pronounce acronyms as a word, otherwise it gets
confusing to clients

I've spoken to people who pronounce URL as "earl" (Judith springs to
mind) and "yurl", and it takes a second to realise what they're
talking about

You can get silly pronouncing acronyms as words:
FBI as fee-bee
CIA as seeia
MSN as musin (yes, I've heard that, but only once :P)
AIM as aim (I know :P)
YIM as yim
CPU as ceepoo
etc. etc.

At least if you keep it as initials, people can be in no doubt about
what you're referring to
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