Hi, I'm looking for a reasonably priced, small bike (she's 4'9" tall).  Even a 16" frame we tried today in the LBS seemed too long from saddle to handlebar.

 Seems like, due to space restrictions in the frame triangles, maybe full sus is not viable in very small sizes?

 Any suggestions on sizes or brands welcome.  Seems like specialized do a "designed for women" range but how small do they go?

seemed too long from saddle to handlebar

Sorry to ask, but was the saddle centered (or back or forward) - and how long a stem - or were the bars rolled forward?  On most bikes you have probably 6" of adjustability.

If she is after a freeride/downhill bike try the Norco B-Line 24" or Kona Stinky 24"?

Also Orange do a very small 5 - again you could fit 24" rims/wheels which would drop the standover.