A FW400 enclosure for $40 isn't a very good price; even Oxford based enclosures are under $30 every day.
First decide which size drive you want:
2.5" drives are smaller/lighter/more pocketable, generally can be run off bus power (no AC adapter needed), but are limited to 120GB and aren't as fast.
3.5" drives are larger/heavier/generally bigger than a pocket and need AC adapters, but they are faster and up to 500GB.
Now decide how you want to connect it:
USB2 - Fast enough for general usage, compatible with the most computers, very slow if you only have USB1
FW400 - Faster, good for Macs with USB1
FW800 - Faster still, available only on some Mac models (PowerMacs and PowerBooks)
SATA - Fastest (and least expensive) of them all, only available for 3.5" drives, few computers have external SATA ports but cards are cheap (if your computer has PCI slots (of any flavor) or a PC Card slot
Now decide what size drive you want. This is largely just a function of cost, so pick drive size or total cost for the drive and enclosure.
If you answer the 3 questions above I'll post some recommendations.