As I am just starting to build and tweak my website, this is something that I have been debating with myself for quite a while. I can now see both sides of the argument. Great thread, very informative!
Generally you do not want to sell yourself short. If your only or best feature is "cheap" then post the prices. If you are in an ultra competitive market this might be required.
If you are selling best, right the first time and such then I would avoid putting price center front on my web site.
IMO putting a big menu with prices is paramount to wearing a sandwich sign out front of your restaurant. Kinda Cheesy
My approach to business is to be transparent with your clients.
It makes them feel more comfortable and those who are willing to pay your prices will contact you..
Unless you have very good sales experience I'd also recommend listing your prices