The only mechanical problem so far was a cracked oil pan, though that was due to idiocy on the part of a person doing an oil change (i.e., me).
The bike doesn't look very good (I paid $600 for it, so I can't expect to much), but most of the problems are cosmetic.
The bike runs great, and has never failed to start. The bike looks like it has been abused (wrecked, dropped, and not maintained) by previous owners, yet still runs great. This is definitely a testament to the high quality of engineering and manufacturing that goes into Honda motorcycles.
Overal, it is a good motorcycle. It runs really well, and handles great. This makes it a great first bike. It is somewhat slow (which is a positive for a new rider, since accidently applying too much throttle won't lead to a loss of control), but it has no problem keeping up with traffic, as long as you are liberal with the throttle. It will maintain 60 relatively easily (I have never gone faster than that, but I am sure it could).
Riding position is a bit cramped. I could use a little more room on the bike, but it is not a problem on short rides. Since this is a 250, it's not likely it will be riddin long distances anyway, so this is not a big problem.
One problem, though. Used parts can be difficult to find. You can buy just about anything you need from a dealer or various websites, but these can be expensive. Also, many parts from the '88 and '89 model years do not fit the 1990s, which is annoying.