I had vm30s on my xs400. They worked okay but it left me wishing for more throttle response. I got the vm26 kit from speedmotoco and have been very happy with it ever since, although I did have to play with jetting as its not fully bolt on. Throttle response is as fast as I can whip the throttle and the top end is good enough for me as I'm not on fast roads very much.
If you go the VM route know this. VMs are very finicky since they are cable operated. While they work, I am not a fan of the 2 into 1 throttle cables as they leave a lot of variables to mess up your sync. Syncing the carbs, making sure float level is correct, air mix screw adjustments are all very important as to how the carb performs at different RPMs. As do the Main Jet, Pilot Jet, and needles but they are easier to set up and adjust. The sudco tuning manual and catalog will help you out understanding these carbs.
Also if you go with VMs and how much room you have I highly recommend getting the 90 degree elbows that go ontop of the carb for the throttle cables. These will help with binding and make syncing easier.
At the end of the day the xs400 does not have much aftermarket support and if your wanting to have fun building something up go for the xs650, cb550/750, or even the sr500 has more support than the xs400.
The only reason I spend gobs of money on my 400 is that it was my first bike and Ive already got too much in it for what I would ever be able to get out of it.