I have the WA state ORV tag.
My truck was formerly fully licensed (had a title, registration, plates, tabs, etc...etc.). When they expired I couldn't license it because its far from legal, and has a V8 in place of a 4 cyl so it wouldn't pass emessions.
I took my TITLE down to the DOL, told them I wanted to switch it to ORV tags. It took a little negotiating because I did this in Redmond (ie yuppieville) and they had no clue as to what I was talking about. I just kept insisting its a normal thing, and that otehr guys do it all the time. Finally I spoke with the manager. She hooked me up.
I can't remember what I paid, it was fairly cheap. ORV's don't have titles in WA State, they only have a registration that is the only proof of ownership.
So they gave me a little ORV Tag (see pic below) that you put your month/year tabs on. And the new registration for it.
As for insurance, I don't keep it. But places like Geico will insure snowmobiles and quads/atv's so I'm sure you could get your ORV 4x4 insured.
Next issue is exhaust, everyone kept telling me I needed a USFS approved spark arrester. So I callled the ranger's office and spoke with a very nice lady. she said any non-glasspack muffler is an approved spark-arrestor. She said if the muffler is baffled (ie you can't see through it, like cherry bombs) its fine. I saved the email incase I ever got hassled or ticketed. I'm running a generic brand muffler I bought from B&B Autoparts for $30 (flowmaster knock off).
As for FS roads, they are not open to non-street licensed vehicles per the rangers office I spoke with unless posted otherwise, such as a few of the roads up at Evans.
I've used FS roads before to access trail heads but I just drive normal and don't draw attention to myself by driving like a total moron.