The confusing part in your situation is the FAQ example of the redirect shows all the default web names and makes you think that you should redirect to the default site. I did this as well but finally realized how silly I was being. One you point your domain name to the root of your 1and1 account; create a redirect page called index.asp. If your website is BStaleysPlace.com and you were going to give me a portal called BuddhasParadise.com, then your redirect page would look like the following.
<%@ language="VBSCRIPT" %>
<html>
<head>
<%EnableSessionState=False
host = Request.ServerVariables("HTTP_HOST")
if host = "BStaleysPlace.com" or host = "www.BStaleysPlace.com" Then
response.redirect("http://www.BStaleysPlace.com/dotnetnuke/")
Elseif host = "buddhasparadise.org" or host = "www.buddhasparadise.org" Then
response.redirect("http://www.buddhasparadise.org/dotnetnuke/")
Else
response.redirect("http://www.s123412341234.onlinehome.us/error.htm")
End If
%>
Notice that you are simply redirecting to the deeper folder. Not to a completely different site.
Hope this helps a little!