you wont have any problem with whatever method you choose. I will suggest you to signup with the option "I will use my existing domain and update nameservers only"
This way your account will be setup on top of the main domain that you choose at the time of signup and then you can point nameservers of all your domains to our nameservers from your account with 1and1.
you can request us for free domain later and you can add it as a addon domain from your control panel. procedure is quite simple and webmasters never face any problems with cpanel. If you are advanced web user then cpanel will look one of the most user friendly control panel to you.
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