The Blog Herald ran a piece on copyright infringement. How to Stop Plagiarism Cold covers steps you can take.
From personal experience I have found that the most effective tactic is to point out in a cease and desist letter that the major search engines Google, Yahoo, MSN etc take a dim view of copy right and they deal with copyright infringers by not listing the site in search results and of course if they have advertising accounts on the site such as Google adsense this too is removed.
Jonathan Bailey’s article covers these points and others in depth and therefore worth bookmarking for future reference.