Thanks to everyone for suggestions with fixing the AC. After replacing the battery and thermostat, and wasting money on a so called repair person, we finally replaced the right part. The part was the circuit board that was in the box above filter. It came as a kit, cost about $100. We went ahead and replaced any wires where new ones were given in the kit. The freeze sensor was also included in the kit so we replaced that as well. So not really sure which piece it was, but we were thrilled when we turned it on and NO MORE E1 error. Hopes this post can help someone else correct a problem sooner and cheaper!