I should have noted that we've been looking at bikes for her for about two months now. The situation with used bikes is quite disappointing because the appropriately sized bikes don't seem to appear in local ads too often and they tend to be overpriced and in need of some serious maintenance. She's very adamant (and rightfully so) about not buying anything suspicious that may have been stolen.
As for the store bikes, we had to rule out Treks and Giants due to unreasonable pricing. Jamis has good deals, but they only stock bikes in larger sizes unfortunately. Same for several other brands we've looked at.
There's a Focus Donna 4.0 I suggested for $450, but the crankset seems like it will fall apart on the first ride and the v-brakes on it do not instill trust :/
Seems like mission impossible to get reasonable pricing and good sizing in the same deal!
Specialized has a 15.5in 2012 Rockhopper on sale for $760, that sounds interesting as well but I think she'd really have to fall in love with it at first sight to make such a budget jump.
Same for Cube Access WLS. A lovely bike, but even further out of her budget at $800.