Wanted: Tiny frame/bike for midget/umpalumpa other half

great vision for a thurs morning ;) yeah definitely not necessary for 2 inch clearance but a wee bit over would be good to avoid chaffage?! also with a standover of 700mm, i've been trying all the OTP 49cm and am pretty much on tiptoe for all of them. falling on the top tube would be, erm, sore.

You definitly want something with a slopping top tube IMHO. Something with geometry like a Giant Bowery for example.
You might get 1cm standover on a XS, which has a effective top tube length (most important measurement) of 51.2cm.
http://www.giant-bicycles.com/en-US/bikes/lifestyle/2344/32159/