I personally would recommend spending a little more for a newer bike that is fuel injected. Nothing sucks more then having to get your carbs cleaned after its been sitting all winter.
MSF course is well worth the $. If you follow your instructors and take the exercises seriously, you should pass the road test without a problem. Also consider 4Fi, YZF600R (not YZF-R6) or Katana 600. All are great starter bikes.