From what I see, the handlebars need to be leveled. The top of the bars should be level with the ground (for a good starting point.

Also, the seat looks extremely low.

I would go to the local Specialized dealer and see if they can fit you to the bike. May cost a few bucks, but would be worth it. They could also advise you on the types of shoes and cleats you need for those pedals. They look like Shimano SPDs, but the LBS would be able to order you the correct cleat.

The shifters on the frame look more like 1994 than 2004. The LBS/Specialized dealer would also be able to pinpoint the model and year.
CB