To be honest, it doesn't sound like you're ever going to be comfortable about the toe overlap on this bike. From what you say, the toe overlap sounds more pronounced than most people experience--I can certainly make slow turns onto a road from a driveway without hitting my foot, even though my bike does have toe overlap. You should seriously consider taking it back and getting a brand (Trek, Terry, others I can't remember) that uses 650c wheels for their smaller frames. It's not worth the mental stress it seems to be causing you. When I was bike shopping, both the Specialized and the Treks seemed to fit similarly, so test-riding a Trek WSD with 650c wheels would give you a chance to see if the problem goes away, even if you didn't buy it.
Good luck,
Dagna