It seems wordpress just does not work with the Microsoft Developer package even though you can actually get it installed. I ended up just punting and adding on the basic WordPress package from 1and1 (which I think is pretty much the same as their Linux package but WordPress is already installed and they update it for you automatically), which is only about $8 a month for the 6 months.
If you just got the package for a WordPress site I believe you can contact 1and1 and they can convert it over to another package for you. But if you are trying to add WordPress onto an established site you’ll probably need to add the new package onto your account.
