Looking for a used R3, what years are best?

The update kit is a good 20 hours, plus parts. If you can get a 2009 or newer then it won't be an issue. If the bike doesn't jump out of 2nd gear at WOT, then it probably will not be an issue either on earlier models.
 
I've now had a 2005 and 2007 with no systemic issues. Look for reasonably low miles and a good price and ride it. I bought the 2007 sight unseen over eBay - from Baxter's.
 
Well, I bought a used 2005 with 12,000 miles. It is a nice bike, VERY different from my Yamaha FZ1, and so far I am enjoying it. Look for more from me here now that I actually have one!
Congrats!
 
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