Wordpress plays nicely with most web hosts, although 1&1 are a little different.
If you try to update a freshly installed copy of WordPress on 1&1 hosting without making this change, some functions (mainly the automatic update processes) will not complete successfully.
The key is to edit the .htaccess file in the WordPress installation directory:
AddType x-mapp-php5 .php
WordPress updates should now complete without error.
You may also want to have a look at this post which deals with an error message after a failed update.