Roth or Traditional IRA

My fiance is in the process of rolling over her old 401k. As such, I introduced her to my broker, who handled my rollover in 2008. She has had one meeting with him and is scheduled to go back this week, to finish up the process. One decision, she has to decide upon is does she set up a regular IRA or a Roth?

We both like the idea of the growth being tax free, but that means the current cash would have to have tax paid on it. Where if she made a straight roll over from the 401k to a traditional IRA, the taxes wouldn't be paid until she retired.

If she chose the Roth route, when would she have to pay the IRS? Right now? Next April (2010 tax season)? Or when?

At the same time, I am contemplating converting my traditional IRA rollover, I already have with him, to the Roth. Yet, I have the same questions. So what should I do? I want to get all my debts paid for this year and pay for a wedding with cash, so how will this affect me and my goals? Any thoughts?