I totally agree with the seeker333 that the seat is probably too low. It's hard to tell that from the picture, but the fact that she wants the saddle shifted all the way backwards is a clear indicator that it's too low. She needs space to stretch her legs but there is no room now.
Try raising the saddle by a couple of cm's and then raise the stem. Actually raising the saddle will also shift it backwards so move it forwards if necessary. I wouldn't worry about the KOPS (knee over pedal spindle) at all at this point, in many situations it doesn't apply anyways.
Try
fit calculator (French road fit) if you need precise numbers. (oops, seeker has posted this link already as well).
And yes, my wife had exactly same issues, and fiddling with the saddle and handlebar height as well as the distance between the two has fixed it. She is able to spend many hours in saddle now, which would be a impossible with her old bike fit.