We have investigated the ISM of the I Zw 1 QSO host galaxy with Plateau de Bure mm-interferometry and high angular resolution near-infrared imaging spectroscopy . We have detected a circumnuclear gas ring of diameter \sim 1.5 ” ( 1.8 kpc ) in its millimetric CO line emission and have mapped the disk and the spiral arms of the host galaxy in the ^ { 12 } CO ( 1-0 ) line at 115 GHz as well as in the H ( 1.65 \mu m ) and K ( 2.2 \mu m ) band . Combining our new mm- and NIR-data with available estimates of the radio- and far-infrared contributions to the nuclear emission , we find strong evidence for a nuclear starburst ring . A comparison to other sources with nuclear activity indicates that these rings may be a common phenomenon and contribute a large fraction of the central luminosity . Both the CO rotation curve as well as the NIR and optical images are consistent with an inclination of ( 38 \pm 5 ) ^ { o } . Using this we obtain a total dynamical mass of ( 3.9 \pm 1.6 ) \times 10 ^ { 10 } M _ { \odot } and a cold molecular gas mass of ( 7.5 \pm 1.5 ) \times 10 ^ { 9 } M _ { \odot } for the inner 3.9 kpc . With an estimate of the nuclear stellar contribution to the mass and light from NIR spectroscopy and assuming that the contribution of the HI gas to the overall mass of the inner 3.9 kpc is small we derive an \frac { N _ { H _ { 2 } } } { I _ { CO } } -conversion factor close to 2 \times 10 ^ { 20 } cm ^ { -2 } K ^ { -1 } km ^ { -1 } s found for molecular gas in our Galaxy and many nearby external galaxies . A comparison to broad band spectra of spiral galaxies , ellipticals and the nucleus and disk in NGC 7469 suggests bluer disk colors for I Zw 1 , and that star formation in the host galaxy and the western companion of I Zw 1 is enhanced . This is also supported by a starburst analysis using all available data on the northwestern spiral arm . The presence of molecular material within the disk and on the arm indicates that at least in this region 12 kpc from the nucleus star formation , and not scattered light from the QSO nucleus , is responsible for the blue disk colors .