With services like Lulu taking a cut of almost 50% for what is basically a hosted shop with decent SEO that sends e-books upon purchase, there must be services where I can upload a .pdf, .epub and similar documents for a (much) better price.
Additionally, it would be preferable with a means of applying an ID and/or purchaser's name to one of the book's first or last pages to discourage people from throwing up the e-book on a sharing service - while maintaining the incentive to share with people whom you trust.
I recall 37signals hosting one of their e-books themselves and selling it on Lulu, so maybe there is something to be learnt for setting up the service yourself.
With such a burgeoning self-publishing revolution, there must be someone who offers this service.
1) Piracy is going to happen no matter what, so stop losing sleep over it. Count on the fact people will pay for books and concentrate on selling them.
2) Every eBook DRM has been cracked. But most who do that do so in order to be able to format shift. Get an eBook at $9.99 from Kindle Store vs $$ more from Sony or Kobo, then strip DRM and use Calibre to reformat to ePub for a Sony Reader or Nook.
3) As others have already pointed out, there's B&N's nascent PubIt! service. What that has going against it is that B&N uses a mutant form of the DRM that was common for ePub until B&N stuck its nose in. B&N books are stuck on Nooks for the average person (similar to Kindle) who doesn't want to learn how to DRM strip. You limit your market.
4) Kindle is THE monster. It's where the majority of eBook sales take place. If you know HTML, you can create your own eBook. If you need help, get Tallent's book: http://mikecanex.wordpress.com/self-publishing-read/
5) I'd stay away from Smashwords & Scribd. The first has a format meatgrinder that will drive you insane for trying to make things look good. The second has had that whole Archiving "error" marring its rep.
6) Make sure you have an ISBN so you control your metadata.
Any other questions?