The Wald Folding Basket is great: I have them on all three of my around-town bikes. They are robust enough to carry a heavy bag of groceries (far more weight than my Nashbar Townies could safely carry); they fold up; they are screwed on so are tougher to steal; and they are inexpensive. Mine do not make noise and they aren't that heavy considering the conveniene. I mount one folding basket on one side of my rack and a removable Townie on the other; this combination allows me to bring home a full collection of groceries (heavy stuff in the rack; bulky but lighter items in the pannier) from Trader Joes without damage or inconvenience.

So... highly recommended based on personal experience.