Make the distribution of your game as simple as possible and release frequent updates ( with free new content)

eg. Angry Birds on the iPhone. Even if somebody pirates the game first, he might decide to buy it just because of the auto update function. (+ the new free content will give a feeling of becoming much more for the money and that you are a decent developer)

on the PC I would use steam. It is great for small developers and the only distribution path more convenient than pirating. 

Prizing is far less important in my opinion. (A game for 9.99$ on steam will be bought far more often than one for 7$ on a private homepage.)


And most importantly: dont focus on the pirates and potential losses, concentrate instead on the paying customers, quality, and increasing the revenue.