Tiny person weighing in here, 98lbs, 5'0, on a lowered bike.
I installed roaring toyz links and did a 3 inch drop at the tail, 2.5 inch drop in seat height (so I could have the balls of my feet touch, I couldn't duck walk before), and the handlebar raisers that allowed me to drop the front 1".
I'm going to install the woodcraft clipons, which although not lowering the front, will put me back in a more sport-style riding position.
You can get away with lowering the back as much as I did because you don't weigh a lot - but if you're going to carry passengers, you'll need to reassess. I have my suspension preload at 6, so that my rear tire doesn't hit my rear fender. I also put a little piece of tape in the undertail to monitor if it scratches it at all - so far, it's been fine, but I imagine if I weighed more, or took passengers it would be a problem.
Speedbumps are the only thing I look out for.
If it helps - I made a website about being a short rider, with a ton of resources and the research I did when choosing how to lower my bike -
www.ridingjezebel.com
good luck
