yeah , that baby is definitely stretching, which means she is looking for more light.. if you are using flouros or cfls, get them as close as an inch or two away from your baby.
and i agree with getting rid of the aluminum foil.. it reflects the light at crazy angles and doesn't allow as much of it to get to the plant.. you can either paint the walls a white... either a flat or semi-gloss work good, or go to a site such as htg supply and they sell mylar that works MUCH better than the foil to reflect light, and i don't think it costs all that much $$$..
i also agree with the above poster and i would re-pot your baby and when you do put it in the soil right up to the first set of leaves.. this will make it much shorter, and it will not affect growth or anything at all.
also, are you feeding her any nutes yet? if not, i would suggest getting a nice set nutrients from a reputable maker, maybe like fox farms or humboldt county, and start off with a !/4 strength and slowly bring them up to full strength... don't use the nutes with every watering, just every other should be good..
best of luck and let us know if you have any farther ?'s and hopefully we can help you out