We have measured the cross section $sigma(e^+e^-topi^+pi^-gamma(gamma))$ at DA$Phi$NE, the Frascati phi-factory, using events with initial state radiation photons emitted at small angle and inclusive of final state radiation. We present the analysis of a new data set corresponding to an integrated luminosity of 240 pb$^{-1}$. We have achieved a reduced systematic uncertainty with respect to previously published KLOE results. From the cross section we obtain the pion form factor and the contribution to the muon magnetic anomaly from two pion states in the mass range $0.592 < M_{pipi} < 0.975$ GeV. For the latter we find $Delta a^{pipi}_mu = (387.2pm0.5_{rm stat}pm2.4_{rm exp}pm2.3_{rm th})times 10^{-10}$
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