Around the same time here in Australia the ThumperNats were up an running and KTM's like this one were being run by the Castrol/KTM team with guys like Craig Anderson steering them. Whilst they wern't technically as good as the Husaberg, the KTM team had the best riders and were at the pointy end of every race. If i remember correctly the Husaberg riders were Vaughn Styles, supported by Suttos along with Andy Caldecott and Andy Haydon sponsored through the Caldecott shop and SA Plasterboard, but weren't technically a "factory" team. Of the rest of the bikes on offer, Honda battled with the XR400 until the XR650 came along and Michael Byrne gave it a fair shake, although steering a leopard tank on steroids must have been a challenge. Kawasaki had a crack with a KLR 650 but never got the right rider/reliability combination. There were a few DR350R's getting around until the DRZ400 came along and i remember a really trick DRZ450 running at the time with essentially a RM250-2T chassis and a carbon fibre fuel tank being punted by Darryl Huley. I don't remember much of the Huskies, i guess cause the were a bit un-reliable. Of course the YZ400 was the bike to have and pretty much changed the sport.
One of the Castrol KTM 540's that looks identical to this one (less tank & air box) is owned by someone in the Latrobe Valley and we see it from time to time in he shop. It's still in its original livery with black anodised forks and FMF exhaust system.
Re the forks they refer to, i have a set of those Marzocchi forks and corresponding tripple clamps and they are/were a disaster and not much better than the WP Extremes which I also have a set off, both fitted to my motocross Husabergs and the bloody things leak oil just looking at them. For some reason the top guys that raced Finke on the big bore 2 strokes some years back loved the Marzocchi forks over the offerings from Honda & Kawasaki.