I had a Blackburn Mtn rack on my Diamondback, which I used for commuting and groceries. When I got my Kona I bought another Blackburn. Mine was $13 used at Recycled Cycles.
Whatever panniers you get, be sure they have a drawstring top to keep groceries from bouncing out. Kept my groceries (an other stuff) in place pretty well.
My Nashbars had the bungee bottom-anchor attachment (below the 2 top hooks). My REIs have a weird side-ways hook thing that I don't like much. No matter how I try to adjust it, it's just not as secure as the bungee style. Haven't lost an REI pannier yet, but worry about them.
"If Americans want to live the American Dream, they should go to Denmark." - Richard Wilkinson