Nope...doesn't need to be drilled. Most canister filters come with plumping accessories that allow you to hang the hoses off the back of the tank. But its good to check whether the filter comes with them or not.
I use, Rena filstar XP3s and have not had a problem with them (even though I've mistreated them). Of course, get the XP# thats the right size for your tank.
If I were to re-decide on which canister filter again, I would probably go with ehiem classics. They are the cheaper model....the two things they don't have is media trays (so replacing media is a little more troublesome) and the hose lock quick connector. Its a mechanism that allows you to unhook the canister filter and leave the hoses in place and primed. So, when you need to clean the filter or change the media, its more difficult. If you can live with this...as I said, I'd go with the eheim classics.