In reply to latam2012:
The trick for me was to develop my technique, and concentrate on the footwork. Don't dismiss the footholds that are only a couple of inches up from where you are already standing; they will give you the extra height to get to the hand hold. Don't be afraid to move ACROSS a climb and rocking over, in order to evenually work your way UP it, on the basis of finding those slightlyhigher footholds. By the way, something that was mentioned earlier really does work- gently "windmilling" your arm does lengthen your reach- the action unlocks various muscles and allows the fibres to relax and lengthen.
Where there is no foothold handy, consider smearing for a step or two, and getting your feet nice and high ready to stand and go for that handhold. My old climb partner of 6'1" used to call me the Smear Queen!
Outside is much easier- anything goes, and you are not limited to a fixed number of holds. It can be frustrating at times though- I can't do Black and Tan at Bowden Doors without an initial leg up although the climb itself is a piece of cake thereafter! I have never therefore been able to claim it as a lead or second. On the other hand, I ended up leading the middle pitch of Ardus at Shepher's Crag because my tall partner couldn't get off the deck- he was hunting for high holds, while I just rummaged round at the bottom of the climb, and started stepping on stuff that was only a few inches off the deck. I used to climb with another chap who relied on his upper strength to "thug" his way up a climb, but was absolutely pants on the small, fingery technical stuff. I worked such a route on the slabs at Sunderland wall for weeks, and was chuffed to finally get it at a pretty hight tech grade (for me!), a 6 or something, I think.
To practise, go to your wall and go to the 'baby' panel for kids. Then up you go, limiting the use of you hands by either using ONLY ONE (try wearing a thick mitten on it so you can't be tempted) or passing your right hand over your centre of your body, and only allolwing it to go to hand holds on the left, and vice versa. It teaches you to move over the panel, and secure your footwork, and teaches less reliance on your hands. i also used to tie people's hand to theor ankle with a lenth of bungy or cord to again limit them from constantly reaching up with the hands. When moving up a panel, try to think about shifting your feet FIRST.
Gotta go, work beckons.
Sx