I think it turned out pretty nice, and from her first ride reactions, it's exactly what she wanted.
Started as a mid 90's Gian mtb/hybrid. Frame, fork, seatpost, cranks and big chainring, and wheelset are all original. Everything else was replaced with new budget minded stuff from Pricepoint, Nashbar and the LBS. Right now it's running 42x18 and she said it feels pretty good.