Your family must think a lot of you. Giving the gift of riding is THE best possible present, as I'm sure everyone in this forum will attest to.The first thing to do (which you are smack in the middle of doing), is to get comfortable on the bike.
First adjust the seat height to a comfortable level (you can always fine tune it later). Then ride it a bit to get a sense of where you want the handlebars to end up. As you mentioned, they seem too low. There are two things you can do.
First, as 'Cat mentioned, you can try a different handlebar. You can find them in all different shapes and styles - check at your local bike shop (LBS) for one with a high degree of rise (even 4 or 6 inches).
Second, you can also buy high-rise stems (some are adjustable). I'd highly recommend that you let your local bike shop perform the swap though. Stems and even handlebars are tricky to install (and safety is paramount here!). You might even have to have your cables lengthened depending on how much rise you add to the handlebar.
I specialize in customizing bikes to find the ideal fit for the individual rider. No formulas and no "kits" can do this. It is accomplished through experience and working one-to-one with the individual. Sorry I can't help personalize your bike for you here, but I know that if you work with your shop (LBS), you can find your sweet spot.
It may not be totally perfect (with this bike), but remember the important thing is to just ride. Your heart and your kids will thank you.
Sky
Posted by Skywalker riding a bit farther than I did yesterday on 05/12/03