Just jumping into this now, but....I am 5'5" and tend to have short legs (and arms--my father's side of the family Irish body type...), and I have a 50cm Rambouillet; yes, they have 26" wheels, and I had to do a bit of searching, but found good tires (continental makes some). I lucked out with this bike, because it fits wonderfully and I often feel "at one" with it. I'm riding it in my avatar. The Legola does sound very nice, though.
The bicycle is the most civilized conveyance known to man. Other forms of transport grow daily more nightmarish. Only the bicycle remains pure in heart. ~Iris Murdoch, The Red and the Green