ladalang:

Are you saying I need to put it on the 1and1 server? 

Yes and no. You don't need to put it on their server, they should install it on their server.

ladalang:

Do I just load the exe file on that server? 

No, they have to install it on their server where you website will be hosted. They might already have it, just check with them. And they should not charge you extra for that.

 They have SQL Server 2005 on their server. 

Again, this is not my code this is the code from the starter kit.  I assume I have to change the code to reflect the above (SQL Server 2005) rather than express.