Bought a 2006 Honda Shadow 125 for £1699 with 3500 miles on the clock and in mint condition and I'm very pleased with it.
Excellent bike to learn to ride on, with a nice light clutch, 125cc V-twin engine and very forgiving to mistakes. The only real niggle I have is the lack of rev counter...much anger! Being a cruiser the seating position is very, very comfortable, and while I've not been on any super long trips on it yet, I really feel like I could just ride it all day long. Fuel economy is excellent aswell. MCN must have made a mistake with their calcuations because I've covered 140 miles on a tank and only needed to fill up with 8 litres! Brilliant!
I don't know what the reviewer is saying about it being lardy, underpowered and too heavy for slow traffic, though. It's a crusier with a learner legal engine...what do you expect?! Of course it's not as flickable as, say an RS125 would be but that said, it handles very nicely, it does reach 70 (eventually) and filtering on it can be a laugh, but is fairly easy to manage. Ground clearance is no problem either, unless you really do go nuts as if you were on a sports bike!
As for storage, mine came with a pair of lovely leather panniers which are adequate for small/medium sized items but will not fit a helmet. You might be able to squeeze a jacket with no spine protection in one though.
Also, if you intend to take pillions frequently it would be wise to invest in getting the bacrest/rear rack. While the rear seat is very comfy, theres nothing behind your back which lowers confidence a little. Because of the rear rack included, you now have the option of adding more storage too, if you so desire.
Overall, an excellent first bike thats easy to use. Get a well cared for 2nd hand one though, the price from new is very expensive.