Godaddy are Thieves

Godaddy are saying my domain has expired yet I tranferred it to another hosting company. Basically I have access to the domain and have it registered until 2014 with another hosting company but Godaddy blocked me from changing the nameservers, while I have been trying to sort this out with them the domain has expired and now they want me to re-new the domain with them for a fee, they will then not allow the nameservers to be changed until I pay the fee despite already being the legal owner of the domain.

Any ideas?

You should have transferred your domain name to different registrar of your choice as well(Namecheap, for instance). This is what I do every time I bought a domain from GoDaddy auctions. Keep in mind, hosting services is different from registering a domain. If you only changed/transferred hosting, your domain name is still on GoDaddy if you have not transferred it to a different registrar.

Did you contact GoDaddy support, already?

Get out from GoDaddy as fast as you can, they are crap. I will always recommend Namecheap any day.