I just read a very interesting article on shareware. Do you think it is a viable option for distribution on a game? Are there any other avenues (barring getting a deal with a professional distributer) that an independant developer could use?

Yes.

I am friends with the founders of three successful shareware companies, two are multi-million dollar businesses with several employees, the third is just about to reach the million dollar mark.

Look at id software, which started out on the shareware market.

Of course, there are many failed software companies. See the articles section of GD.net for some accurate and useful information about what helps a shareware company succeed.

I was more focused on a single game(developed by me) as opposed to a shareware company. My question was it a good idea for a developer of a single game?

Shareware is a way of payment (try before you buy), not related to 'single game' or not. A company is just a way of structuring the finances and expenses of the project(s).

The most common method of shareware games today gives the user a crippled version (time-restricted, i.e. play for 60 minutes, or feature restricted, i.e. play the first 5 levels only). The user can try this for free, and distribute to friends.

Allan