I've owned a .ly domain for about two years now (with libyanspider has been the only registrar I know of for that time). While the prices are high, and the support staff speaks limited english, and the site is confusing, I haven't had any serious problems.

The service is as advertised; support exists. When they accidentally locked me out of my account by changing their control panel, things were resolved in less than two days via email.

That's good enough for me. Just remember: you are subject to Libyan obscenity laws. No porn, no bashing Islam.