Cheers all, sounds like a lesson learned for everyone. This guy has now said he has deleted the domain from inside his 1&1 control panel, but 1&1 don't have any record of themselves owning the domain in the first place (that's what I got from a rather fruitless conversation with the overseas call centre).
When challenged on this and asked to provide his customer number his response was (almost word for word) 'bring on the Nominet dispute, it doesn't cost me anything anyway.' Curses!
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