non-silica based sand, fine pool filter gravel, smooth gravel. pretty much avoid anything you think might scratch 'em up. Mine is barebottom, but thats more for ease of cleaning then astetics. It has grown on me though.
I have 5 yellow tail eels in a tank with smooth river gravel and they bury themselves in it but prefer to burrow through the suspended java moss taking up good portion of the tank. My fire eel is in a tank with smooth river gravel as well, and will burrow in with no problem. It also like to rest in a "cave" much of the time.
I have yet to own an eel that will burrow in my tank even though they were up to their eyes at the LFS. I moved my TT from a gravel-bottom 55 to sand-bottom 110 thinking he may just enjoy the "feel" of sand. He still prefers his hidey holes and has yet to burrow. I keep heavily planted tanks with wood and rocks, so he's perfectly at ease. Perhaps the burrowing is a "last resort" hiding place in a mosty barren tank.
I say you my as well just use what you like...