The top of the saddle is 7" above the seat tube. At this adjustment, the min insertion line is about an inch above the seat tube. Sounds like a new seatpost will solve this issue and I will take your advice and experiment with the stem as well, thanks.

I guess this is where my confusion started. If I need to adjust the seatpost and stem higher then the original equipment allows, is this ok or do I really need a larger frame? But the next larger size frame for the 82 Traveler was 25", which would put the top tube too high for me to be able to stand over it. I was thinking maybe I was missing something basic.