Bike fit is so important, I've heard that tall women can have just as much trouble getting a bike to fit as small women if they need a shorter tt.
It is good your asking questions, the more you know about your needs the better you can communicate your concerns in the LBS.
A one inch drop is a lot. I think the rule of thumb, ( I could be wrong about this) is 1 cm at a time. I made a 4 cm change in the rise of my handlebars and my body complained for about a month afterwards.
I know it sounds like a lot of money but paying a qualified fitter for a refit will save money in the long run.



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I took a few bikes for a test ride this weekend, but being from a small town I didn't get to ride one that actually fits. I tried out a 16" Trek 6700 WSD (no offense to pink lovers, but this really isn't my color) and a men's 17.5 6500. The WSD was too small for the length of my legs and on the men's, the reach to the handlebars was too far. I'll have to visit bike shops when I go out of town on business to try and find the right size. I'd really like to try an 18" 6500 WSD.
Based on what you are saying, I think I"m on the right track. With time, practice and the information that I've received on this site hopefully soon I will be able to get my seat in the right location and will be firing the correct muscles. My main concern is not to hurt my knees. 