You have to adjust the Z axis when you use IK and bring the hip down with Y translate, otherwise you wil get a lot of things going wrong. You adjust the Y translate a little bit, then adjust the Z translate and keep that going until you get your figure where you want it.

Here is Alyson in a squat pose. I didn't work very long on this, but it's close to what you are looking for.

I did it as above, and once I got her down there, I turned off IK and adjusted her legs side to side.

EDIT: adjust the Z axis forward. You will see distortion in her knees and ankles. Just adjust the Z translate until that distortion goes away, then keep moving down on the Y translate...

If I had a nickle for ever time a woman told me to get lost, I could buy Manhattan.