Thanks for the discussion everyone. It's always interesting to hear how other people handle these sorts of things. I have decided to try out the poker chip thing so I picked up this set
Amazon.com: Poker Set In Aluminum Case: Toys & Games
on the way to work today at Walgreens for $10. The system is as follows:
white = 1 hp
red = 5 hp
blue = 10 hp
green = 1 healing surge
I am going to play SW Saga tonight and will test out the new system, and assuming I like it I will roll it out to my 4e group next week. The one set should be enough (50 of each chip color), except the greens will be a little tight with a group of six that will probably be fighter heavy. But we will see.
Hmm . . . I forgot about temp HP. I will have to pickup some black chips for that.