Joined: Mar 2008
Posts: 5,559
Likes: 53
From: The 'Wack, BC, Canada
Bikes: Norco (2), Miyata, Canondale, Soma, Redline
If that is the new position for the saddle then truly all you need to do is reach forward a little more.
I'm also suspecting that with the bars THAT high and with your saddle to pedal space so short that this bike could well be way too large a frame for you. You obviously have a fairly short inseam given the saddle to pedals spacing. You may well be in a situation where you're reaching up SO high to get to the bars that you're sort of "sliding under" your arms which is causing you to slide forward onto the nose of the saddle. Sitting upright is one thing. But you should still be reaching comfortably down at the same time as forward to reach the grips on the bars. Even on a comfort bike, which this obviously is, you still want your hands to be at around waist height. Then move the bars forward or rearward as needed to get a comfortable reach with the amount of lean or no lean as you wish. Much higher than waist height and I don't doubt that it would begin to feel pretty awkward.
If, as I suspect, you are a bit short in the inseam department then a set of shorter arm 160mm or 165mm crank arms would suit you better. It'll slightly reduce the amount of knee joint flex and tune the pedal circle size more to a set of shorter legs.
If possible a picture taken by a friend of you riding your bike from the side would aid us in suggesting options. My thoughts above are guesses but I'll bet that I'm not far off the mark.