Definitely roll it into an IRA. Whether ING is the best choice is your call. I would go with Vanguard or T. Rowe Price mutual funds.

I don't know much about the ING mutual fund. You might be better rolling it over into a self-directed IRA at one of the discount brokerages like Fidelity or Etrade. You then have access to several hundred mutual fund options, some with no fees. Both Fidelity and Etrade have good screeners to help determine which funds to invest in. If you move to ING, you may be limited only to funds that they sponsor.

If your old 401k allows, you may not have to move your money at all. Most plans allow you to stay if your account balance exceeds a certain amount (usually $5000). Check your plan documents or with your HR person. If your plan has good investment options, consider leaving the money there. You get better pricing on fees in a 401k versus an IRA.

By all means, don't take a distribution of your 401k as you will pay a penalty plus get taxed on the amount that is distributed to you.

yes that's good

I like UBS

If you roll it over to anything in the interim, and contribute to it, you cant roll it into your new employers plan.

I've helped a friend with an ING managed 401...and I really prefer my own Fidelity site..( or even E*trade )
If you log on to Fidelity.com you can get a rep...and all the info you want/need about rolling over, about funds, stategies, etc. AND you can roll it into a nice self-directed IRA that you can select from almost every available fund,ETF or stock that you wish...( and the research to help you choose)
Give 'em the info, and they will handle about 90% of the work in getting you rolled over.