Ken is correct in his evaluation of mode 1. And Chad, some of the best pilots in the US fly mode 1 in competition. It does have several distinct advantages in certain flight maneuvers. While This is not the place to get into which is better because that is strictly a matter of preference IMO and we should just let that lie. When a member says he needs something, just offer advice and try to be correct for a change.
Any major radio repair shop should be able to convert your radio to mode 1 if you are unable to purchase one in that mode.

BTW Chad - the instructor and student do not have to be in the same mode either. I have flown another pilots plane before. His plane/transmitter were mode 1 and I just buddied my transmitter (mode 2) to his and flew his plane and all worked fine. The only problem we had was my transmitter couldn't get the engine down to idle so I just let him take off and then I flew. Again your inexperience has shined through. [:'(]