So, a little update to this thread with some feedback on my decision.
In . I bought a Yamaha XT225 in May 2011, and it was the best decision I could have made. 80 MPG, low seat height, controlable power, street legal. I got my permit, then my license, and I took it out on a few trails. It's a mountain goat and it won't stall, and you can practically crawl up anything. Lots of low-end torque, and very reliable.
Then a month later I bought a Kawasaki KDX 200, which was lowered when I got it. that was the next best decision I could have made. This bike was meant for the dirt, so I was able to improve my riding significantly and ride it a lot harder than the XT225. And I learned that i really enjoy the feel of two strokes that are meant for trail riding.
Now it's the end of June, so I've had the XT225 for 2 months (commuting on it daily), and the KDX for 1 month. I sold the XT225 last night for more than I bought it for (woohoo, that never happens to me), and I'm planning on getting a CR125 and throwing the KDX motor in it. I know I'll be going through withdrawals from not having a street legal bike, but that's where I'm at now. But buying cheap, I was able to ease my way up the food chain of bikes and still come out on top.
A HUGE thanks again to everyone for all their advice and help.
and LOVED it. Rode it