It looks like you would need a longer stem. And as someone else has already suggested, the frame seems a bit small for you.
But this doesn't mean you can't tweak it to make it fit you better. In the pics, you seem a bit cramped, which may not feel uncomfortable for short rides, but on longer rides, it will definitely take a toll and affect your performance.

From the information you have given, I would suggest:
1. Raising your saddle height.
(With the crankarm at 6 o' clock, your leg should be nearly straight, there should be a very slight bend.)
2. Pushing your saddle a bit forward, after you've raised the saddle height.
(If you've positioned yourself correctly on the saddle, the bottom of your knee should intersect the center axle of your pedal, given the ball of foot is positioned on the pedal's center)
3. Getting a longer stem, and if you desire, a more positive or just neutral offset. Once this is done the whole saddle height and positioning will feel more natural.

The end result would be a raised platform for your saddle, to accommodate the short seattube (b/c of your frame size), your whole body moved slightly forward, so you will have more power on the cranks, and with a longer stem, an extended position for your torso.
This video should explain this more in depth:
http://www.youtube.com/watch?v=FAl_5e7bIHk
Hope this helps.