hey guys.. was wondering whats up with the rear pegs on these S40's
they dont lay flat, like normal passenger pegs, or are mine aftermarket and not the original units?

I had one that laid flat and one that didn't.  It bothered me so I did a little grinding as suggested by another forum member -- now they both lay flat.  

Here's a link to the post where I asked about it last year:
http://suzukisavage.com/cgi-bin/YaBB.pl?num=1310268469/5#5

I think some from the factory have a little extra metal where the hinge part goes together when they are down that keeps them from going all the way down.  Just not really a precision-made part -- but if you're up for a little grinding, you can make 'em go all the way down.  Worked for me, at least. YMMV.