First off.....with the adjustable rear shocks on the bike, if I lower them to their lowest setting will if bring the rear fender down a little closer to the rear tire and by doing this, how will it affect the ride and handling of the bike?
Sadly short people (like me) usually weigh less and require softer springs. Squashing a spring down to lower it makes it feel firmer.
By compressing the spring you are increasing pre-load. Bumblebee will hopefully come in and give a coherent explanation of spring force equaling the product of the spring rate (constant) and displacement, or F=kx*. Compressing the spring increases* x, and the force exerted increases, same as if you were carrying a load. Hard bumps will compresses the spring past the initial pre-load point and it acts the same as ever. In layman's term, it'll feel a but stiff for small bumps unless you weigh a a lot yourself.
Some
other countries got mag wheels (and disc brakes) stock on the CB250. They look like
this, nice five-spokes..
* yeah, technically it's F=-kx as displacement is negative too; I'm simplifying here.