Nice deal, but 1&1 is the worst registrar/hosting company in the world. This is why they have to give their stuff away, because any paying customers they ever got got such terrible service they left.
Their billing practices are like out of the 80s too. Can you find me another registrar in the world who automatically renews your domains, and then bills you 30 days after the fact? But I wanted to cancel... too bad it's been 30 days pay up. Where the hell do you turn off auto biling, oh just go through the help section and search a really long time, we buried it good so you have a really hard time. Then you login to a different area all together. They don't include it where you manage your domain. Course not, they suck so badly they would never keep any customers if they did. They need to keep them by making it a difficult as possible to leave.
One time I forgot about an invoice for a domain, and they sent a freaken collection agency after me after 3 months! WTF! From the other side of the world, a freak'en collection agent!
Try calling their support. Last time I tried, I was on hold 1 hour and 20 minutes until I gave up attempting to get through to a human being. Pfft.
Oh yeah, their entire control panel system is running PHP3. I can only imagine the horror of what actual hardware they will put behind your site.
I wouldn't trust this offer or that company to hold an umbrella while I tied my shoes.
Anybody who wants to take that 'free' offer, remember, it's going to cost you your time and sanity. There are other ways to pay when money is not involved.