401k and IRA question.

Hello, I have invested in my first 401k for one month (January 2008)
before getting laid off.  Good start for retirement savings, huh!?
Now that I am doing my 2007 taxes and would like to invest 4k into an
IRA.  So here are a few questions that I can't seem to get answered
from what I have read, and forgive me for my ignorance but investing
is fairly new to me so perhaps in laymen terms would be best.
What is the best way to rollover my 401k into an IRA or a Roth IRA if
possible?  I understand that there is a direct rollover plan but I am
unsure if I can use this to rollover in an IRA and Roth IRA.  And what
about the fact I started this 401k this year in January, does that
matter?
Also is it common to see in ones portfolio an IRA and Roth IRA?  I am
thinking about doing this because I don't know if I would want the tax
deferred or exempt; which seems to me it's like having one foot on ice
and the other on fire.

Thanks.

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