Lynn,
Well, I understand you quite well - as a developer (or at least member of Larien staff, sorry I don't know you) you can't stand people hacking your own products and using them for free. But I would advise you to think of this in another way: "They want our game so much that they are even ready to HACK it!"
Have you heard about Razor1911, Vengeance, Reloaded? These guys are the most famous game hackers all over the world. BUT - they are not wasting time on shitty games, they hack only elite ones. And I think you should be kinda proud that well-known hackers spent their time on YOUR game, because it shows the quality, the desire of people to play your game etc. This is my (gamer's, philosopher's, psychologist's) vision of the situation. No offence.