starting up my 401k..need advise

For me, I believe that the USD is doomed in the long run.  What that means is that bond funds will eventually be worthless.  Stocks will be taking a huge hit as the fiscal problems will cause a long term bear market... it started a few years back.

There are only bad options for 401K accounts.  The least damage IMO will be with the commodities.  If you have a choice of a commodity based fund that is what you want.  If you don't have that choice, the safest large cap stocks would be a good fit.

In better times I would agree to max your contribution.  But that is not the case.  I would advise you participate to get the match from your company, and no more.  Any more income you would like to invest would be better served in a self directed IRA... Roth would be the best choice.