You won't be able to roll over the 403b into an IRA unless she leaves employment with that school district. That said, even with those choices being questionable it probably still makes sense to explore it if you guys are in the 25% tax bracket as a couple. Pulling out money pre-tax to avoid paying 25% now and likely paying something like 15% later will make up for the low quality options.
The main things to be aware of:
1) They will want to sell an annuity. Don't. This isn't them offering an investment, this is them trying to sell you their main product which is insurance.
2) At least some of these insurance companies ought to offer access to mutual funds that don't suck. They can appear more valid that way and will lose out on some $$ going to legit investments in order to have more people sell their insurance/annuities/high priced funds to.
3) Ask what non-proprietary no load low ER index funds you have access to with each provider. You don't want help picking from an "advisor", they will try to sell you stuff. Be specific about what you are looking for (VTSMX, VGTSX, VBMFX are 3 good funds to ask about) and stay on target and it should be possible to set stuff up to not suck.
4) Avoid any fund which you don't understand or has a load or has an ER above 1% (preferably 0.5%).
Report back how it goes. It seems like a lot of school districts are super lazy about 403b providers and just throw their teachers to the wolves without much guidance.