Some pretty common problems for this model mate.....
Brakes - these are always an issue on these models.......there are a few ways to fix this.
First thing is replace the current brake lines. Braided lines are great - if you lived down here I could knock up a set for you

- its unlikely that Pirtec or Enzed will do this, I know the local Enzed bloke won't sell complete kits because they are not ADR-compliant.....but he sells me all the bits for *off-road use only*
What a brake shop will do however - is knock up a set of new rubber lines. This can be a great option, especially if you want to stay with the stock look. All you need to do is find a local brake shop that makes its own lines (most do) - take your old lines in, and they will knock up some exact replicas including fittings. Because the rubber is new, these lines work *almost* as good as braided, and will do so for several years.....and because you are replacing stock rubber lines with stock rubber lines - there is no problem with ADR shit....
The master cylinder can have a kit put through it, where the piston and seals are all replaced, and the bore gets a slight hone to remove any imperfections. This can cost anywhere between $100 and $200 depending on the shop. You could always replace the stock m/c with a later model one - ProblemChild bunged on a CBR600 m/c on his old Zeddie, it works really well. The stock m/c (is is one of those long rectangular jobbies?) - never was a great unit even when new - the bike reviews at the time (and hard evidence from riding the bastards

) - confirms this.
The brake calipers can probably do with a really good clean - as in take the calipers off, remove the brake pistons, clean them right up and replace the seal - I can almost guarantee that the rubber seal around each piston will be rooted. This can cause the piston to stick or seize, or just have a shitty 'feel' at the lever.
Its not as easy to replace the stock calipers with late-model stuff, but these calipers actually work quite well, if they are spotless, have good quality pads in them (EBC) and are being fed good quality brake fluid.
There's not much else you can do with these style of brakes, the old single-slider caliper is an old design that does work, but even when new needed a lot of lever pressure to remotely approach lock-up ....
Starter clutch - this just needs to be replaced with a new one, eventually it will just stop engaging altogether and spin, and the bike will never start. Any good mechanic should be able to replace it without taking the motor out of the frame or splitting the cases (as the manual says....

). The starter motor can be re-wound if the windings are on the way out, and you can get replacement brushes for the starter motor from Z1 Enterprises in the US. Generally, its the brushes which are worn out and need replacing. This is an easy job for any auto-sparky if you have the bits.....
Stalling at the lights etc - it needs the carbies balanced ASAP. Set up idle mixture etc. Also the float height on these models has to be right. Its worth checking the gauze filter that can be found on the 'seat' part of the needle & seat. This can be clogged up. Check the vacumn line from the #2 inlet to the fuel tap - if this is old and a bit stuffed, it can cause fuel-flow problems.....
Its worth taking the bike out to Hyside Leathers, talk to Mick Du Hamel, tell him that Dave from ACT Z Owners sent you there, and get Mick to tune up the bike !

There are some pretty knowledgeable bastards up in the Qld Z Owners, and they should be able to tune the bike up so she runs sweet as.
cheers
OldManRiver