1&1 - Advice needed

First off apologies if this is in the wrong forum:

Right, I took out a hosting package with 1&1 (http://www.oneandone.co.uk) on the 8th Jan this year. At the same time I applied to get a domain I already had transferred over to them. Was told the whole process would take around 7 days. Fine I thought would continue hosting with the previous company until the changeover to cause minimal downtime. To cut a long story short they messed about for weeks telling me that I hadn't requested to transfer a domain, then I had then I hadn't you get the idea. During this time my hosting expired with my previous host so the domain went dead. Since the beginning of February I have been told it's being transferred and to wait, and wait and wait... and this is still ongoing despite several emails / calls/ letters to them.

I don't seem to be getting anywhere and it's got to the point now where the domain has been down for over a month, which as anyone running a site will know is a complete nightmare as people begin to think the site does not exist anymore. To top it off I'm paying for the privilege. Advice is what I'm after really as I'm not sure legally or otherwise how I should proceed. As far as I'm concerned I had a contract for the domain to be transferred in "around 7 days", I pay up and coming on 2 months later nothing has happened which IMO means they have broken that. Hoping someone has had a similar situation. Cheers guys :)