I know what you mean about the Caliente. It's heavy as heck. In the rain it's not that great even with Koolstop pads. I'm 4'11" and find the bars fine for myself.
I think the bike has all original components. Would 650b wheels work for them? do I have to get a new fork?
I thought about going to the community bike center and stripping all the parts...if I don't use it for cross I guess I could turn it into a a fixed gear for fun as well.

I think I will go the mountain bike route. Do I just check on craigslist? How do I knwo if the frame they are selling is in good condition? Maybe the community bike center will have a few mountain bike frames my size. I will check them out some time.
Can I just put drop bars on the mountain bike?
I don't think I will get a cross bike at this time. Just considering my options.