Lowering Pegs

Buy some IMS pegs for a late model Yamaha that are made with the low design. Several pair on Ebay. Check out the cross reference page on the home page for details.
 
The expensive way is to buy the Pivot Pegs and swap the right and left mounts. This is supposed to get you about 12mm lower. I have em on my KTM but have not tried it. Really like them by the way and so do my knees. Some people say they can't adapt to them but it took me all of 10 minutes or less and I was totally comfortable with them.

http://www.pivotpegz.net/
 
You can also lower the stock pegs if you are handy in the shop (and low on cash). Hack-saw off the round nub on the bottom pivot portion of the stock peg. Reweld to the the top side. Now your right peg fits on the left side of the bike and vise-versa. I did this on my bike 6 years ago and it worked great.
 
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