Update #2:
I ended up replacing the bars on this bike in addition to pads, brake cables, and cable housings. My wife is tall, but has fairly narrow shoulders and small hands, so the 42cm bars weren't working.
I have it all back together, but there is a pretty bad misalignment between pad and rim surface on the right side of the front caliper. See attached pic. The left side meets evenly. In the rear, it is flipped. The left side is angled a bit (although not nearly as bad as the front) and the right side meets evenly.
If I squeeze harder on the lever, the pads will line up as the caliper flexes.
This seems less than optimal?
Thanks for all of the input so far. I ended up with the Jagwire Pro Road pads since they got good reviews and I had a gift certificate for REI. I've read that they aren't as good as the Koolstops, but I figure anything will be an upgrade over the Tektro pads.
Thanks,
Bob