Could be a bent fork. Can't tell from the photo 'cause it doesn't show the fork.

If you look at the bike from the side, the line through the head tube should be continuous down the upper part of the fork blades, until the blades bend forward near the bottom. If there's any backward bend in the fork, that's definitely it.

Some toe overlap is not unusual, many excellent frames, especially smaller sized models have this.

See: http://sheldonbrown.com/gloss_ta-o.html#toeclipoverlap

Sheldon "Big Feet" Brown