If you can find a good DRZ, it's a much better bike on or off the road than the XR400. I had a 96 XR400 until I bought my 2000 DRZ. It's a better bike in every respect except low end torque, but the DRZ has so much more power everywhere else, it's an easy tradeoff. As far as making them street-legal, I don't think there's any difference. You can buy a kit or assemble your own from aftermarket and/or junkyard parts. I went the latter route with my present DRZ, but on the XR and my 2 previous bikes, I went the kit route. The kits are great, but they tend to add stuff that you don't need in Texas, like a battery and turn signals, on/off switch to replace the kill button, hi beam indicator light, etc. Just more weight and more stuff to break. Another factor is cost, the kits are around $400 bucks now! I made the DRZ legal (enough) for about $100.
_________________________
Hoop
2006 XR650R, the dual sport bike
2004 DL1000, the street bike