I'm 5' 1 3/4" with short legs (27 3/4" inseam) and shortish arms, and found the 44cm Specialized Ruby to be a good fit. I had the 48cm for about 6 months, and felt too stretched out. So now I finally feel like I have a bike that fits ME and not some generic male that bike companies used to think were the only bike riders. It has 700c wheels but I have had no toe overlap issues. And in reading the posts above on other brands like Giant, Trek and Jamis, it looks like manufactures are 'getting' that the WSD concept isn't about pink bikes with little flower motifs, but FIT for us smaller women. So you should be able to find a bike you can feel good on be confident with.

This is where having a good LBS is like gold. They should be able to put you on a bike in your size and let you test it out- only you can decide if the 700c wheels make the bike feel too big or unstable. I have heard good things about all the brands mentioned here and I am sure that at least one of them will fit you well. Good luck.