astrahl, take a long look at the Yamaha V-Star 650. It's got a very low seat, which will make it easier for shorter legs to balance at a stop, and it's a great looking bike with lots of features for the money.
The shaft drive is nice, it requires less maintenance than a chain.
You may also want to check out
http://www.ridemyown.com for motorcycle reviews from a woman's perspective.