This is mainly due to the New Castle News being a pile of garbage. Witnesses to the crash, including the woman who was directly behind Sarah, told police multiple times that Sarah stopped at the sign. The crash happened at the end of my road, so I'm really familiar with traffic patterns at the intersection.

I didn't witness it, but taking into account the (apparent) fact that Sarah stopped, the layout of the intersection, and the fact that there's no evidence (tire marks) that the other woman tried to stop or veer out of the way I'd venture a guess as to this is how the crash happened:

The other woman had just pulled onto the main stretch of highway from a nearby road, and left her turn signal on. At about this time, Sarah would have pulled up to her stop sign, and seen the woman driving towards her. Seeing that the woman had her turn signal on, Sarah started across the road, knowing that there was a yield sign where she thought the woman would turn (accounts for Sarah stopping, looking for traffic, and then going across the road, despite the other oncoming woman). The other woman, likely on a cell phone (accounts for no attempt to brake or veer), doesn't see sarah, and T-bones her.

in short:
red is sarah
blue is other woman
yellow is how sarah thought the other woman was going to go
http://img580.imageshack.us/img580/8670/he.png

Again, this is just my guess as to how it happened, based on what I know. While it's true this is a very simple explanation, and an explanation that puts next to no fault on sarah, this is the only explanation I can think of that makes any sense, given evidence.