We have measured the ratio $sigma(e^+e^-rightarrowpi^+pi^-gamma)/sigma(e^+e^-rightarrow mu^+mu^-gamma)$, with the KLOE detector at DA$Phi$NE for a total integrated luminosity of $sim$ 240 pb$^{-1}$. From this ratio we obtain the cross section $sigma(e^+e^-rightarrowpi^+pi^-)$. From the cross section we determine the pion form factor $|F_pi|^2$ and the two-pion contribution to the muon anomaly $a_mu$ for $0.592<M_{pipi}<0.975$ GeV, $Delta^{pipi} a_mu$= $({rm 385.1pm1.1_{stat}pm2.7_{sys+theo}})times10^{-10}$. This result confirms the current discrepancy between the Standard Model calculation and the experimental measurement of the muon anomaly.