Hey RickShaw!! I have the same bike, weigh 190lb. and ride northern MI sandy trails and here is what I did:
Tires - Dunlop 756 fr & rr (you're right - the stock Bridgestones are junk for our kind of terrain)
Forks - Raised 10mm in clamp, revalved for better Low/High speed compression and I like the .44's (oil height you'll have to set to your type of riding)
Shock - Stock! I set the sag and ended up being happiest w\ 105mm. Static sag is good with this setting, so I haven't gone to a different spring, but I could if I wanted. it's right on the bubble.
Good luck and let me know if you have any other questions!! :cool: