I use GoDaddy for almost all of mine and my customers' domains...and have had no issues...however, I have never tried transferring from them. I have heard of others who have had issues, however.
One thing I recently discovered, though, is their "unlimited" hosting is a misnomer if you are using php and mySQL databases. You can only have 200 concurrent hits on the database without receiving an error message...now, while that may not seem like a limitation, if you are thinking you have unlimited bandwidth, etc, and build a whopper of a site on their "unlimited" hosting account, it would not take much to max that out (each database query counts as one hit) if you have even a fairly busy site and rely on database backend support.
But more astounding than that was that you cannot have more than one password combo for each database...and there is no way to set the permissions (they are mysteriously preset...now, is that open and very permissive or very restricted...dunno...could not find any documentation...). I generally have a very limited front end "user" and leave any real editing to behind the htaccess protected admin directory with a slightly more liberal user...no-can-do with GoDaddy...and if you are the impatient type - oh, someone who feels they should be able to set up a database pretty much in real time - forget that...it can take up to 24 hours for the "set up" to occur...not sure if they have a tiny little pit crew back there making all the changes or what, but that alone was enough to make me ask my customer to put on the brakes and we moved her hosting elsewhere! (to stormerhosting.com, to be specific)...so in short, for basic sites, godaddy might be OK, but for anything with real merit or bite, they're not Your Daddy!
Just my 2-cents...
Melanie