For stationary systems, size is your friend, to get good noise reduction with low back pressure. Using drums is a good idea, and if you make the first drum large and empty, the engine sees it almost like discharging into open air.
I'd avoid flat surfaces as much as possible, to avoid having the shell of the enclosure itself acting like a speaker. The ends of typical drums might pose a problem. Burying the whole thing might be a solution, but if it ever corrodes or gets plugged...
And, as jdincau said, be careful of engines that don't start easy. I've heard stories of engines filling the exhaust system fuel of air/fuel mixture, then lighting it off, and blowing man-hole covers in the system 30 feet up!