I'd second the VTR250 as a great first bike – loved mine to bits and was very sad to see her go when I upgraded. You quickly get over that sadness when you ride a bigger bike though :P
I ride everyday to work, and have done for the past few years... I never found the traffic scary, just be aware of what's going on around you, and stay out of blind spots.
Good luck & you won't regret it!
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