Skysooner: I don't think it really matters all that much, especially for weight loss as long as you are doing something. If you don't mind doing it for an hour, keep doing that and slowly over the weeks increase the speed/resistance. As far as I know, building cardio ability centers mostly on keeping your heart rate up for an extended period of time, the heart is a muscle, working it out is good!
Best advice I have for your wife, again, this is just personal experience, so everybody is different etc.... If the weight is stable, that generally means caloric intake=energy burned over the course of a day. By having a slight caloric deficit, you will lose weight. So, seeing as the current regime is good, if she can work out a touch longer or go on a slight (drop maybe 100-200 calories a day tops from normal) diet for a week or two, she should be able to drop the four lbs, then go back to normal and stay there.
Good luck all around!
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