The stock setup on a Milano is a 20T rear cog, and a 44T chainring. With the 26" wheels, this gives the following "gear inches".
8th Gear: 88.4
5th Gear: 54.7 (direct drive)
1st Gear: 28.8
That is, generally speaking, fairly low gearing. But that top gear is pretty high, I doubt I'd ever be pushing 88 gear inches on an upright bike around town. Check with her, does she use 7th and 8th gear much?
If not, you should try upsizing the rear cog, or downsizing the front chainring. You may not be able to go down much on the chainring, probably down to a 38T on that crank. That would get you to these gears:
8th Gear: 76.3
5th Gear: 47.3 (direct drive)
1st Gear: 24.9
That is quite a bit lower, you give up the 8th gear, and add a new lowest gear, basically.
To take it down even further, you can go up to a 22T rear cog.
On your stock 44T (this is a fairly small drop) - it is the same as giving up half of your 8th gear, and adding a new slightly lower 1st.
8th Gear: 80.3
5th Gear: 49.7 (direct drive)
1st Gear: 26.2
In combination with a 38T chainring - This is the same as giving up 7th and 8th gear, and adding a new 1st and 2nd.
8th Gear: 69.4
5th Gear: 43.0 (direct drive)
1st Gear: 22.6
For more numerical fun, try: http://sheldonbrown.com/gears/internal.html
P.S. There are a lot of ways to calculate "gear ratio". I like the Gear Inches method, just because I'm comfortable with it (I ride a highwheeler, sometimes), and can very quickly make comparisons. It takes into account gear ratio, wheel size, and tire size. Gain Ratio is more accurate because it adds crank length into the equation, and Gear Ratio is less accurate, because it doesn't take into account wheel or tire size.