I just got a Penske 8987 3-way rear shock. Not cheap but a very nice piece of gear. Firm but in no way harsh. Took me a few rides to set up right but now you can hardly feel mid corner ripples and that vague rear-end feeling is gone. The bike handles great on dirt and sealed roads alike. Comfort
and performance! Adjustable for height, preload, low speed compression, high speed compression and rebound, highly recommended.
My forks are in pretty good shape with new oil, but I think I'll go to a Racetech front setup with gold valves & springs.