Sloan's recommended setting for seat top to pedal top at lowest point of a pedalling stroke at 1.09 times one's inseam was indeed akin to gospel in the early '70's when I was a mech in northern California. Sloan based this calculation on proper ankling technique and supported this sum using a study that measured energy output for various adjustments of this seat-pedal distance for a fixed crank length. The 1.09 adjustment had the highest energy output. As John Strizek pointed out, there are a number of other variables, such as the bb height, that will significantly affect the bike's "fit." At 5-4 with boring proportions, my favorite rides were a 52 cm. Mondia Special off the rack cyclocross and a 54 cm. Cinelli GC from Spence Wolfe set up with that 1.09 configuration, both 1971.
Hon Lee Stockton, California where being number 1 on Forbes.com misery index is dynastic USA