Thanks for the advice fellas! I did indeed end up buying this motor - $400, including shipping. Not too bad!!
So any recommendations as to how I should prep this thing before I install it?
While you've got the engine out of the bike don't forget to scrub it down and repaint.
Assuming the oil is already drained remove the filter and oil pan and clean.
Pull the stator, shifter, valve, and clutch covers and clean out the sludge that
will be there. Pull the oil gallery plugs and clean.
Basically remove all the covers and clean and replace with fresh gaskets/o-rings.
Flush the engine with some solvent to help remove the sludge.
When you do get it fired up I'd run it only until the oil is hot then shut it down and drain it and change the filter. Repeat at least once more. After that I'd run it maybe a few miles then change the oil again.
If the bike sat for a number of years there's gonna be a lot of sludge in the bottom of the engine that will dissolve/break up when it gets hot.
At least that's pretty much what I did my used motor that had been sitting for years before I bought it.
Seriously, looking at the motor it's been sitting outside for a number of years. You may even want to pull the oil pump apart and make sure it's clear before you try to start it. Post some photos when you get the motor.