I have used 1and1.com fairly extensively for my own servers and have had a multitude of problems with them, especially when it comes to billing and web hosting downtime.
Today, 1and1.com had a outage that affected all of their dedicated server clients (including my two servers an M & an XL). The sites were out of commission for over 7 hours. This affected mission critical applications I had entrusted to their hosting environment.
What happened when I tried to contact them? Their phone lines were down. What happened when I wrote a note on their Facebook page? It was deleted by their IT staff who apparently were more focused on deleting comments on their Facebook wall then on fixing the server problem.
I am switching over major sites to Rackspace today and my others will follow when I have the free time to move them.