I've spent time on both SPD's (clones and Shimano branded) and Time's.
I thought the flotation the Time's and Crank Brothers add would be a good thing, but I could never feel as comfortable as I would with SPD's. I really like the solid connection between pedal and shoe, and found the Time's/Crank Brothers lacked any solid feeling whatsoever.
It really is personal preference, but I would recommend starting with the SPD's and see how well they work before trying the Time's/Crank Brothers. Just turn the retention screws all the way down and get a good feel for how far you need to rotate your heel to eject your foot.
If you do go with SPD style pedals, do not get the multi release cleats. Yes, they will allow you to unclip easier than the standard single release cleat, but they will also result in you frequently unclipping when you don't want to.
I started my wife out on Shimano M530's last summer and she picked it up quicker than I expected. Now she doesn't ever even want to switch back to flats. You can get the M530's for around $30 new.
You can easily mitigate the lack of straightness with your knees by adding a slight cant to your cleats before tightening them to your shoes. Most people I've set up on clipless for the first time move their cleats around 3-4 times before they feel comfortable enough leaving them in one place, this is especially true with SPD style pedals.
Old Shimano DX pedals?
I've been using the Five Ten Maltese Falcons for the past 2 years. For a skate style shoe they have a more aggressive tread pattern that I was looking for. Helps when hiking in the wet conditions we get out here, and the treads don't get clogged as easily as a standard skate style SPD shoe. The soles were stiffer than I expected, but they are nowhere near as stiff as a race styled shoe. Comfortable to wear driving to and from the trailhead, going out for beers after riding with no awkward strides due to a sole being too stiff, or the awkward shuffling required for glossy floors when wearing stiff race cleats.
