I love this topic because I passionately believe cycling can be mainstream, and that people can bicycle for transportation and dress normally. When we did the Two Mile Challenge, one of the participants had a goal of figuring out how to dress the way she likes to, and still bicycle. She likes to wear short dressy skirts. There's several fairly simple solutions-- wear shorts under the skirt, take off the shorts after arriving at work. (Hers was a short commute. She could easily walk it--even easier if she would carry the heels she likes to wear.) Bring a change of clothes. Etc.
She ended up not really coming up with a solution during the month we did it, but she admitted that was more lack of effort on her part, that there had been several good suggestions.
2009 Trek 7.2FX WSD, brooks Champion Flyer S, commuter bike