For dry green forest lanes the xtr is a reasonably good machine and it can cope with some rough stuff occasionally.
It is still a big bike at nearly 170kgs so bear that in mind.
But on general green lanes it will still kickarse bigger bikes like the BMW R1150gs's easily.

Ridden well you can keep up with absolutely anything on tarmac twisties. It is great in town too, good on fuel and cheap to run. It runs OK two up too.
Even when I buy another big bike im gonna keep my xtr, I love it more than my XJR1300, GSXR600, CR125 and about the same as my old ZX9R.

It can do anything, except motocross........well, maybe even that with the right setup.

Tyre. I run Metzler Touraces on mine which are better than the original Michelin Siracs it came with. I run 75% on road and 25% off. but I live in the south of France where its pretty dry.