Mine hides, but always has his head poking out. But will always come out at feeding.
http://www.youtube.com/watch?v=EagKgFk_SFA
I love my fimbriated moray eel aka yellow-headed moray. It's a fish-eater if it gets hungry enough, but for the past 3 years has stayed away from my little fishies which would all be an easy snack. They only grow to about 3ft so are manageable in most home aquariums.
Mine comes out at night and roams the tank, swimming from end to end. During the day, he'll stay in his cave with his head sticking out, just like you see on the Discovery Channel.
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220gallons
But overall budget and love of the colors led me to get a snowflake eel, and my eel has been very good to me so far and I have no complaints.
Are larger SFE's less apt to escape the tank? I had a small one many years ago and it always found ways to escape my tank.