I am a proud owner of the european version of the XV920, which is called TR1 and has 980ccm, instead of 920 in the US.
On the early models (81-82) the rear headgasket tends to blow, because of some edges on the cylinderhead. There are some companies in Germany, which can sort that for you by welding it up and then flattening it again.
Except from that, the starter is dreadful, but certain versions of the Virago 1100 starter will fit and these will also have a little more oomph.
Progressive springs in the front and in the rear (the air-assisted shock is basically alright), plus some steel-braided-brake-hose plus a good set of tyres and you have a nice bike for everyday use. But be aware of the fact, it will never be a true sportbike in that way.
Ah, and if you exchange the tail-unit with one from a SR500/XS400 it looks a lot nicer...