1&1 makes it very difficult to cancel contracts (especially where domains are tied to hosting, something which is a big NO-NO that I have learnt thanks to my 1&1 experience). They are also devious and dishonest (e.g. their promotions may say that you will get 1 domain free, but when you contact them to take up their offer they will claim that that only applied to a .info or a .biz domain). Finally, their support is awful: E-mail replies are slow and perfunctory, if you call them you either get minimum-wage folks who know very little and if you ask for a supervisor, you are likely to get an arrogant, Brit guy who could not care less.
Summary, avoid them!