Using results on algebras that are graded by p-groups, we study representations of infinitesimal groups G that possess a normal subgroup N (sic) G with a diagonalizable factor group G/N. When combined with rank varieties, Auslander-Reiten theory and Premet's work on SL(2)(1)-modules, these techniques lead to the determination of the indecomposable modules of the infinitesimal groups of domestic representation type.