If you are on an actual 'dedicated' server, MySQL database size would be limited by the size of your hard drive or the partition (if you dedicate a partition to MySQL). The only time you'd be limited by database size is on a shared or reseller hosting package.
If you're on a dedicated server, are currently with 1&1 and limits are being places on *your* dedicated server as far as mySQL database size, it's time to move on anyway.
From the sounds of it, you're more so on a shared or VPS solution, not so much a dedicated solution.
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