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I'd probably go with the international fund and then the short term bond fund. Both are going to produce the lowest capital gains and dividend yields of the funds provided.
TIPS inflation adjustments are taxable events, REITS throw off a lot of dividends, and small cap funds throw a lot of capital gains.
I might also suggest you look into the vanguard explorer funds rather than the small cap indexes. Small caps is one place where, unless i'm badly mistaken, managed beats indexed the vast majority of the time. Its also one place where it may be prudent to pay more in a management fee because evaluation of companies prior to investment is a lot more important in a small company than a fortune-500 company. Evaluation costs money. Plus these have higher trading costs than big company funds. A cheap managed small cap fund might just be an index in disguise.
I also went with the separate europe and japan/pac rim funds so I could set the allocation between the two of them to suit me. Right now I think the next 10 years in the pacific area beats the next 10 years in europe, but the full intl indexes heavily favor europe.
You might also consider a small holding in the emerging markets index fund. No more than 5%.
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