Thanks John I think i'll lean towards a 200/250 just not sure if it will have enough grunt on the highways to stay out of trouble but I think we'll give it a go anyway. I'm looking in the US $1500 range. Santiago does sound like the place but by the time my contract ends my visa is up so i had to book a flight to Lima already. I'm getting to Lima in 3 weeks and Flying out of Rio after carnival in march without anything planned for the middle. Will just go and see what happens. Just got to figure out how it is to register/insure on a tourist visa in Peru and if I could onsell it in Rio. Thats not too far off the motto..

Edit: Just read your last post and saw you're not planning on buying in Chile.... but I will leave this here for anyone who does a search.

Just something to be aware of, if you're buying second hand in Chile and the previous owner refuses to give you a 'power of attorney' document (this document can leave them legally liable for some things apparently) then you could be stuck there for a month before your papers arrive and Chile isn't a cheap country to be stuck in, average hostel cost there is like $15-$20 for a dorm bed and also food is rather expensive unless you're shopping at the market all the time or living on hotdogs.

Alternatively you could buy a new GXT200 like previously mentioned and receive the papers in a couple of days or perhaps travel Chile during that month and have the papers sent to you wherever you are though when I did this the hostel said they never received them, they had like 20 people working there so nobody knew anything, thankfully I had power of attorney.

Chad,
Had a look at some Chinese bikes yesterday. Was immediately drawn to the Wanxin Spanker 200 (who wouldn't be?) but all the brand new Wanxins in the showroom were suffering from corrosion, pitted chrome etc.
Had a chat with a bloke in a multi franchise (Yamaha and various Chinese manufacturers - although not the Quinqui/Genesis/Euromot dr200 clone that people speak well of). He told me if i was thinking of buying Chinese in Peru to get a make called RTM - mainly because they bring in lots of spares compared to the others - not sure if this is the case in other S.Am countries.. He had a new RTM 200 (dr200 style bike) there for 3600 soles (the honda cgl125 terra is 4000 = about $1500 U.S). - Think you can get on an RTM CG125 clone for about $800
The other thing to bear in mind if you're buying here is how long you're going to have to wait between buying and riding away. I've been quoted 10 days (new Honda, resident work visa, we'll see..) but an American on ADV (on a student visa) waited something like 40 days if i remember rightly (his thread title was Chinese 125s).
Anyway, i imagine this info creates as many questions as it answers but thought i'd get back to you as i'm in Lima looking at cheap bikes. Good luck and feel free to get in touch.
If you want less vague advice, get the Honda and stick to the back roads. They throw in extra tyres (one set for tarmac, one for rough roads, i.e Peruvian tarmac, 2 free services and a helmet, parts/dealers are everywhere and you'll get a good chunk of your money back when you sell it at the end of the trip. Never ridden one ,mind.
PS. in terms of 'wanting something quicker to get out the way of the traffic' if you're not in a rush i'd be using the least trafficked roads i could find here - what Monaco is to F1, Lima is to banger racing

Thanks a lot esville. Will definitely be heading for the back roads. I will have my girlfriend riding pillion so am going to get at least a 200, that RTM sounds like its the right price. Do the dealers have much in the way of 2nd hand Japanese bikes? I've been reading that threan on ADV rider and from what I gather if you get the 'permiso especial para firmar contratos' first it shouldn't take too long. 10 days until I get to Lima, then its time to learn to ride a bike.

'girlfriend riding pillion' 'Lima' 'time to learn to ride a bike' (no emoticon for choking on a satsuma)
Good luck.
I'm guessing her dad doesn't use this forum..

Haven't seen any second hand bikes in dealers, only online, but they don't seem to depreciate much (or the posted price is the start of some serious haggling - if time's on your side)

Let us know how you get on,
Ian

Oh well, the first time i'd driven a bus and on the right hand side of the road was through Manhattan and Brooklyn and that scared me but it seems I haven't learnt yet. A new China bike looks to be on the cards. Did any of them have racks that looked decent? Cheers

Everything has a rack here. How else would you carry gas cylinders?