I'm 4-12 with a 27" inseam and ride a BMW. They've always been made tall, even the K75C. Here's what I've done in the past to compensate for my vertically challenged legs....
1. "Herman Munster" boots - boots with a THICK (like 2" thick) soles and a built up heel.
2. Lowered the front forks and shortened the shock. I have a Works Short Shock. When they lowered my K75S by doing just that (forks + shock), I gained about 1.5"
3. Seat Lowering Kit - some bikes have them, some don't. One problem with mine - the seat was wider so I really didn't get any more foot surface on the ground, but it was a much more comfortable seat than I had.
4. Low-Profile Tires - Added about 1/2 to 3/4" more to foot surface. After doing all of the above, this was the last step. Now, instead of being on EXTREME tip toes, I can actually get the ball of my foot on the ground. May not sound like much but it made a big difference to me.
Hope this helps.

Yay for more shortie riders! I'm only 5' 2" - and yes it is sometimes a pain to find appropriately sized bikes. I ride a honda rebel which I fit fine on - feet comfortably hit the ground with room to spare.

there are a few different sites for short riders on the net with suggestions for bikes - all you have to do is poke around a little.

you can also lower bikes....but the danger with that is that when you do that you're taking some of the shock absorption away, which means you're more likely to go flying if you happen to hit something.

My first bike was the Buell Blast by Harley/Buell and it came with a low profile seat which was great for someone only 5'3". It is a great starter bike- very easy to learn on and light weight. My next (new one now) bike is a Suzuki SV650S- this is BIGGER but we bought a lowering kit for it ($70) and I fit on it just fine, no teetering or anything.

I also have that problem, what I did with my bike (sv650s) was to get an upholsterer to take the seat covering off ,reshape the foam, then re-cover it. I found that it made heaps of difference. Also wearing boots with a thick sole helps.