I've also been trying to host a moodle server on 1&1 and found that 1&1 has some configurations that are, to my knowledge, out of customer reach.
I suppose 1&1 users must alter or add PHP files to the installation before proceeding.
I have however found Moodle 1.9.1.9 to work flawlessly without having to touch much.
BUT if you are going to install Moodle 2.x I should caution to remember a few of these:
1. make your domain set to point to a folder on your root. This gives you empty root to install moodle with htdocs and moodledata
2. after making your MQSQL database, set the db to UTf-8 general ci as noted in the installation notes.
I have to still point out even after doing those things noted above, I still get the site admin locked out. Below are some issues I have found.
MOODLE 2.2.2 seems to have things activated however SCORM courses do not
launch ( giving an error) after successfully being uploaded.
MOODLE 2.5 Still missing site admin.
MOODLE 2.8 NOT EVEN PERMISSIBLE BECAUSE OF MYSQL not being up to date
Thanks,
if anyone can help in these matters it would be much appreciated.