In early 2004, I saw a multi-page advertisement in PC Magazine for a new web hosting company calling itself 1&1 Internet. It looked interesting, and of course if something is free, it's worth giving it a try for many reasons. I didn't use the account, though, for anything other than a very rudimentary look-see at their offerings.
Then in November 2004, I began to run into cost issues with my hosting company (Infoquest.com). My SQL Server database was around 75-85 MB, and this pushed my costs past what I was comfortable with monthly. Naturally, I decided to shop around.
I was delighted to find that 1&1 offered what they call 1&1 MS Developer (MS = Microsoft as opposed to Linux servers). The package was far more than I needed, but wow! For $29.99/mo., and no setup fee, I'd get 4,000 MB disk space, 100 GB data transfer, lots of cool add-on programs for newsletters, free software, and 5 free domain names. And best of all -- this price included 200 MB for SQL Server! With their widely touted 90 day money back guarantee, I didn't see how I could go wrong.
This, of course, is the story of how it went wrong.
First, let me take some of the blame myself because there's a few things I obviously overlooked in the fine print, due to my zeal to get a more cost-effective package. But please let me know if you think I'm wrong for putting the rest squarely upon their shoulders.
Where do I start? Since SQL was a big thing for me, perhaps there would be a good point. I quickly learned that the use of SQL Enterprise Manager to connect to the server was forbidden, as a security risk. A built-in query window was available, and worked in a very clunky manner, often timing out. Then came the slowdowns. I have one client who uses the database almost exclusively, logging in from numerous worldwide locations. They reported more problems with the site locking up (due to SQL and ASP) in the three months I was with 1&1 than the entire 18 months prior to that.
As far as setting up my pages, since I had access to more than one domain, naturally I separated them out into their own folders. 1&1's control panel provided for easy identification of which folder goes with which domain. Simple enough, right? So I thought -- until all domains pointed toward whichever site I uploaded last! I was transitioning 2 over to ASP.NET. Support told me that I was not permitted to have more than one page named default.aspx on my hosting account, because "ASP.NET doesn't work that way."

To get around the issue, I did some fast Irish-American ingenuity, and the pages were running.
So I decided to take a look at some of these tools, such as the newsletter one. It quite frankly did not produce any more than an error page, and no one in support could provide a reasonable answer in over two months.
Speaking of support ... approximately 30% of the time, their support phone lines will announce that, due to high call volume, you should call back later. An emailed request for support comes back answered either inappropriately or not addressed whatsoever. For example, if you asked why a domain was not pointing towards the correct folder as you set it up, for example, you might receive a cut-and-paste reply including the FAQ link for how to register for a domain.
About two weeks ago, things reached crisis proportions. I was really disappointing my client, since simple tasks were bogged down, and the SQL Server was timing out under a very light load (many people logging in, but not concurrently, and doing only searches). For all the technical resources they claim, one wouldn't expect this.
I did get a new host, which meant of course transferring the domains I had registered with 1&1 to a new registrar, and pointing them towards the new hosting site in the meantime.
Not so fast.
At this writing, I'm still trying to get my domains transferred. When my account was formally canceled, 1&1 reset everything to point to their nameservers. I asked them if, as a courtesy, they would point everything to the proper location while the transfer was underway. They promised that they would; however, nothing has yet happened.
I also called their billing department in regard to the 90 day money back guarantee. I was told that since I'd upgraded from a free account, the refund policy did not apply, as the upgrade was considered as having expended the 90 days.

(Their terms & conditions do state this, which I admit I missed at first.) I have a very big problem with them considering two separate hosting packages to be identical, in terms of this guarantee, especially since one was paid, and service was not delivered as promised.
Look at any of their advertisements, and what is first and foremost? Get a free hosting account (this time around, I believe it is 6 months). And down the page, you will see their 90 day refund policy touted.
In my experience, 1&1 is neither reliable nor capable. You would be well served to go elsewhere.
I'd be glad to hear anyone else's experiences and provide any info I may have left out, if it will help you make your decision.
Yours truly,
Bryant