If anyone is still paying attention to this thread - any ideas on how far I can raise that stem? I brought it up a tiny bit but got a bit nervous about taking it too far. After another ride this morning I think I could use a solid inch higher than what's in the pictures above.
I might play with the saddle a tiny bit more, but it's really close to right I think so I'm probably going to have to deal with the stem to really get the right fit.
EDIT: Nevermind...
http://sheldonbrown.com/handsup.html to the rescue. I'm at the min insertion mark with no room to go
(bonus question: Is there a secret to getting the stem re-alligned? I did all sort of trial and error to make sure it was plumb with the front wheel, there must be a trick...)