That EEPROM is certianly big enough. I'm sure there are a number of options, just depends on cost vs. what mets you needs for size/package/interface/etc.
What is the 'Best' thing for storing strings? Depends 
You could just store them in the commands used, ie:
Code:
LCDOUT "Today is the very best day to program PIC's"
LCDOUT "I have questions but I can't think of any answers"
LCDOUT "u", REP "m"\24
Or, use ARRAYWRITE:
Code:
ARRAYWRITE MyArray, ["Today is the very best day to program PIC's"]
ARRAYWRITE MyArray, ["I have questions but I can't think of any answers"]
ARRAYWRITE MyArray, ["u", REP "m"\24]
Although simple, these methods use up code space.
If code space is limited or your not talking about predetermined strings, and since you have to get a large storage device for the data anyway, storing the strings there would work well. If you want to preserve all of the space for data, and the chip has an internal EEPROM, use that.
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