I have a similar problem as a previous provider (OCMango on 4/25/2008) with getting Moodle installed on my 1&1 server. The installation hangs when setting-up database tables, and I have tried troubleshooting this problem with the moodle installation FAQ's, but it's not working for me. And I'm not sure if there is a problem with the database as this is my first time creating a mysql on 1&1 or if there is something else going on. I could definitely use some help from someone who has experience getting moodle up on 1&1 or similar server.
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Probably some permission problem on the Moodle database itself or some misconfiguration in the [url removed, login to view] of Moodle. I could sort it out for you, lots of experience with Moodle.