I wouldn't necessarily count out the hybrids with step-through frames (but then, maybe I'm a bit biased since I happen to ride one). For riding around town, especially if you do what I've done and attach a plastic crate on top of your rear rack to carry things, it is very practical. (I'm sure that if I had the standard horizontal top tube and had to mount by throwing a leg over the seat, I'd constantly be kicking that crate!!) Ditto to the craigslist suggestions--some quite decent bikes can be found there for good prices; just make sure you've done your research and figured out what you want and what size you need. I got my bike on craigslist after determining that I wanted a hybrid (for around-town riding as well as some riding just for fun and exercise) and educating myself as to what were decent brands as opposed to department-store clunkers. I didn't do as much research on sizing as would probably be recommended, but once I found a bike I was interested in I emailed the seller, told him my height and asked if he thought that bike would fit. Once I got a reply saying that it would probably fit, I went and did a short test ride, and came home with that bike. The fit seems pretty good, now that I've been riding around on it (it's a 15-inch frame, top tube length would be about 49 cm if it were horizontal; I'm 5'2" with a 30-inch inseam). I did have to get a longer seat post to get the proper saddle height, and now the saddle is at about the same height as the handlebars or maybe half an inch lower. Maybe a similar bike would work for you, as it sounds like our height difference is all in the legs which would just be a matter of not jacking up the saddle as high (although if your arms are shorter the reach could still end up being an issue). This bike is a Giant Nutra from I'd say about the mid-90's, in case you happen to find one on craigslist or somewhere else and want to see if it would work for you.