Your wife needs a 48cm bike. I'm 5'6 and my friend who is 5'7 both ride 48. Her legs are 4cm longer so she has her saddle up higher and runs more spacers under a 9cm stem. I have short legs and a long torso, so I have a less spacers under a longer stem on the bike. I have a cbb to top of saddle distance of 66cm, much like your wife. The numbers you put for her Specialized are almost the same as a Soloist 48cm (both come with a 51.5cm TT). Keep in mind, if she wants to get the front end lower, the 48cm with a longer stem will give you a lower front than a 51cm with a shorter stem due to the shorter head tube. You'll just have more seatpost showing with the 48cm.
Here is a list of the CSC riders and their bike sizes. Pedersen is the smallest at 5'7 and rides a 48cm. Sastre is the next smallest at 5'8 and is the only rider on a 51cm.
http://forums.cervelo.com/forums/p/1852/10431.aspx
Pro's tend to get a smaller bike with a longer stem to get the bigger difference in saddle to handlebar height they use. Many recreational riders tend to get one size bigger to bring the bars up a bit. Keep in mind, a smaller bike should be slightly stiffer and lighter.
Cervelo has the right idea with reach based geometry. The inseam length is not really that important as you can adjust for this by moving the seatpost up and down (like my friend and I). The headtube is a static measurement and you can only adjust your stem by a few centimetres before it starts to affect the handling. It's a little counter-intuitive. For instance, a 51cm would fit me better than it would my friend, even though she is taller than me and has longer legs. That's because my reach is longer. I would just run the seat down a bit on a 51cm and get a 9-10cm stem (but then I wouldn't be able to get the drop I want - hence the 48cm!). If she got on a 51cm, the reach would be too long for her no matter what she did and she would never get a comfortable fit.
Hope that makes sense!