If you could PM me or post the URL, that would help in diagnosing potential indexing/ranking issues that may be presenting themselves. I've had this problem before with clients websites and it's very annoying but there is usually a reason for it!
It's included because it's in the URL, but you won't get a ranking boost because it's in the URL, the power is in having your keyword be an Exact Match Domain (EMD). This is going to change in 2011 according to Google, but for now, your best bet is to get an EMD and use that.
Having the keyword...
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