A squid is a rider who does not wear protective gear. The word originates from either the Navy sailors of the San Diego area in the 1950's, who were famous for reckless zooming around town, or the manner in which the human body tends to separate at the torso when it hits pavement unprotected at triple digit speeds, the torso dragging intestines behind it resembles a squid.
I typically buy bikes and cars off craigslist. Both of those R1s were bought on craigslist.
edit, maxed out 10-posts again:
The Ninja 250 is a great beginner's bike, a good sport bike to learn on. Don't buy a new one, though. They depreciate quickly, and you can find a nice used one for two grand or less. Look on cragslist and cycle trader.
As for gear, these are the choices you have to make. Gear is hot, sweaty, somewhat uncomfortable, and not especially cool. But I typically ride at triple digit speeds, that R1 does 0-160mph in about seven seconds, so I wear a ton of gear. Here's what I wear:
Helmet:
http://www.kneedraggers.com/image_storage/5/ac/5ac6504e81a2c1251412ff91c993290c_rough.jpg
Jacket:
http://www.motorcycle-superstore.com/ProductImages/300/2007_Icon_Accelerant_Jacket.jpg
Gloves:
http://images.leatherup.com/imagesproc/47789_H_SH315_MW355.jpg
Armored Shorts under jeans:
http://www.ascycles.com/images/products/F/FAS-P_forcefield_actionshortspro.jpg
Knee Guards that also fit under jeans:
http://indysuperbike.com/img/Icon/fieldarmorleg.jpg
And some riding boots:
http://www.jsaccessories.co.uk/Picts/Stock_193100000001.jpg
I like Icon Gear:
http://www.rideicon.com/
And Scorpion helmets:
http://www.scorpionusa.com/
Do you need all of this? Probably not. But if you crashed, you would be thankful for whatever you had on. At a minimum, you need a helmet, jacket, gloves, and at least reasonable long jeans and shoes. I like Icon as a reasonably-priced brand for gear. Scorpion helmets are a good deal as well. The helmet is not something to skimp on. You don't have to get a $400 Bell, a $200 Scorpion will work just as well, but don't wear something junky you got at a yard sale for five bucks.