I used to use 1&1 for domains and hosting, their hosting and support are terrible, and I find their transfer/cancellation process strangely difficult, but they are the cheapest and domain name registrations don't need much in terms of quality.
I now use namecheap and love them. They also have no delays in registration: when I was at a talk by Randall Munroe, he mentioned a domain name he thought was funny. 3 or 4 people lunged for their laptops to register it, and despite me having to enter my CC# (I have to start leaving $10 in my account for such emergencies), I won it, even though everyone claimed to have gotten confirmation of a successful purchase.
I use them and even recommend them. One thing that did rub me the wrong way is that when I went to cancel one domain it wasn't straightforward and they say they will reveal your real information on whois after cancellation (and I think during transfer). Seemed sleazy to me (but I thought maybe there was some good reason for it).
I second that. Been using 1and1 for about 3 years now and have no complaints. They have good prices and their configuration interface is well designed and intuitive.
