From walking around in LBS this past weekend I was presently surprised with the Trek 1100-3000 series. These bikes have a very nice feel and good reliable components from a great company. I saw most of these bikes in the $650-$1300 range (some had performance add-ons).
Regardless, I feel as though it's best to get her a comfortable bike that she test rides and gets the full review on from a local store. In the long run, any problems or maintaining issues that arise will give her less stress if they are handled by the LBS.