Tim,
I took a look for you and the only advantage that I can see in going with the more expensive shared package (value start) is that you receive all of the software and web building tools listed at the bottom of the chart. If you are looking for raw power and control then the virtual server package seems to be the best choice. If you are new to web building and could benefit from the software and other tools then go with the shared.
Personally, I would choose the virtual server package.
Hi
I currently use 1and1.co.uk on a shared environment
Magento does not work perfectly on this environment as when you try to use Magento Connect and try to download something it just freezes.
I have tried to contact 1and1 so many time about the Magento Connect but they do not have a clue about the problem.
Is their VPS managed? Otherwise you will need server management skill to manage them.
I advise you to start small and only upgrade when your store grows.
I have the technical skills and knowledge to manage servers or vps’s as my background is in the IT industry, I’m currently going for the VPS platform. I’m just having a bit of trouble with the php versions so I’m just checking with oneandone to see if they can upgrade, if failing that I will use the php-cgi work around.