Personally, I have been looking at the Suzuki DR400S, which by all
accounts I have read is the most dirt bike you can get that is street
legal.  Of course I would modify it a little to react more like the dirt
model.

Having said all of that the Honda XR400 is also a very good bike.

I have looked at the TT250R's, KLX300R's and similar bikes and I would
consider a smaller bike, but I would have to ride one.  I like the punch
of the 400's.

My $0.02.

Grant Gall

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