I upgraded my hosting package at 1and1.com. I doubled my disk allowance, got a ton of databases, more free domains (I have several), more bandwidth, more, more, more. All for about $1 a month extra. It will be about $2-$3 more later, but the package was pretty good.
Before I upgraded, I backed everything up to a local disk and did a SQL dump of my database. The upgrade went as smoothly as it could, though. The 1and1.com website said the upgrade could take up to 6 hours but mine was done within 2 hours. Everything was good except my wordpress permalinks were not working on ericholsinger.com. I managed to fix that quickly, though. The netrailhead.com site was fine.