the server behavior is the second in the list "Security Assist email Password"
change the following line:
$WA_MailObject = WA_SecurityAssist_Definition("smtp.1and1.com","25","Key Allegro Owners Association","","");
to:
$WA_MailObject = WA_SecurityAssist_Definition("smtp.1and1.com","25","Key Allegro Owners Association","","", "UTF-8");