In reply to LP:
My wife reckons she's 5 feet 2 inches but she never is, more like 5 foot nothing!
She has an old cannondale jekyll in a petite size, a giant trance in a small and a merlin malt 3 in a 14.5 inch. She collects bikes like some women collect handbags, mind you she's got a few of those as well!
Obviously the cannondale is out of your price bracket but the giant was bought in a sale for £700 and the merlin was about £450 albeit quite a few tears ago.
Don't get my wife started on male bike shop sales types, even I find them patronising towards her, she might be a fifty year old stumpy but that doesn't mean she can't ride a bike.
Check out the merlins, not the flashest looking but quality bikes and components which are well put together.
Pmc