250-500cc 2000 WR 250 any good - Fix it or Move it on?

Just bought a very used 2000 WR250 - got it home and started stripping it and have found it needs a lot of work (Replate Cylinder, Piston Kit, Shock Shaft, water in the trans oil, Main bearings seem Ok - but should probably rebuild the lower end as well) cables, wheel bearings, - My local bike shop says these bikes are unreliable and give lots of trouble, but my 2004 WR125 is the nicest handling bike I've ever ridden. I'm trying to decide whether to fully rebuild the bike or to get rid of it. - Is the WR250 a good bike? - Have they improved a lot since 2000?

yes it is a good bike your local shop is wrong.
would it be viable, if you intend to keep it then yes, if not sell it on.my advice is replace all the seals, gaskets and bearings thoruoghly check all gears and do any porting or mods to the frame you might want and you have a hand built individual that holds its own against anything else out there.

I've had mine for about 10 years now and have been very happy with its performance, reliability and cost of operation. Fortunately, I got my bike in good condition so I'm not sure if I would feel the same if I had put a lot of money into it.
And yes, the big brother does handle like the little brother! This bike is so nimble in the tight woods and when it's time for 5th gear it is super smooth at top speed. ie. no head shake, whatsoever!

To me, it seems like a simple exercise in math. What did you pay + what will it cost in parts/labor to fix - the bike's actual cash value if it were in good condition. In most cases the end costs will far outweigh what a bike in good condition is worth. Some will argue that "you'll know what you have if you rebuild it" and there is some merit to that, but for me it's more about acquisition and resale. That will determine my costs to use the bike and in my experience I'm always better off buying something a little newer that is in good shape, riding it for a year or so and then selling it. It has always cost me less to do it this way which leaves me more $$$ to upgrade to something a little newer.

Thanks guys - this all helps. I bought a brand new KTM 300 EXC in 2010 and it was the lowest ownership cost of any bike I've owned - (unfortunately the handling left me a nervous wreck). Husqvarnas are pretty rare over here and the choice is really KTM or buy a 4t. My first ever dirt bike was a Husqvarna / Cagiva? 260 many years ago, and I've had lots of YZs since, so I was feeling a bit nostalgic when I bought the WR250 - if it handles half as well as the 04 WR125 I'll be happy. I race hare scrambles and the 125 is the bike for me in the wet, but when its dry I get left behind. Thanks again for the replies - I think I'll start collecting the parts and rebuild it during the winter.