we did that for Anevia.com for their VOD servers tracking (split the moves in every picking). Works great so far.
To streamline the process I coded the mrp_prodlot_autosplit module in extra addons, you can grab it from here (using Bazaar or by manually donwloading the few module files).
https://code.launchpad.net/~openerp-com ... tra-addons
So far it works great in production. We also adapted Anevia invoice/picking reports to display each serial number indeed.
As explained in the __terp__.py doc, the only missing feature is splitting production orders so that it's also trivial to encode individual production orders.
This is simple safe code you can use it without thinking too much. I hope Tiny will someday include it in the addons. Hope this helps.