Some people don't like putting pine needles in their compost pile, since it makes it more acidic, but they will apparently not harm your pile. Gardeners suggest that if you want to return it to equilibrium, you can add some limestone, which will neutralize the pH. Pine needles decompose more slowly than other inputs, due to the waxy coating (you can speed things up by chopping them up), but break down into a nice mulch.

You can definitely use pine needles for you compost pile.  But, initially the pine needles will cause a spike in acidity in your compost.  This is normal and will even out after a short period of time, allowing the soil's acidity to retain to a neutral state. 

You should add any green material such as grass to your compost first.  Then, add an inch or two of the pine needles.  On top of that, add dead leaves or twigs.  Turn the pile once a month for a few months to gradually add the pine needles to the compost without a huge spike of acidity.