SEO-friendly Views: How do I make contextual filters work together with exposed filter criteria? I have substituted my frontpage with a view at http://example.com/frontpage.
I use it with two exposed filters: country and city. The current url format (http://example.com/frontpage?country=us&amp;city=New York) is not too much SEO friendly.

What I would like to use is http://example.com/frontpage/us/New-York.

How do I do it with Views and Drupal 7?
You're nearly there, but you need to replace your exposed filters with equivalent Views arguments (i.e. Country and City). Then if you change the view's 'page' display path from frontpage to frontpage/%/%, each percent will be mapped to the arguments in the order they appear.

Once the above is done you can still use exposed filters for other fields to control the view, but they will need to be other for fields. If you need to change the city/country arguments inside the %, look into making a 'Jump menu' view display to provide a drop-down to control the view, rather than an exposed filter. Also see the Jump module.

If you need more power, a related alternative is to re-create the page in Panels which will allow you to pass arguments to several views in different panes at the same time. Views should do the job on its own for you, though.