Well....you can ride any bike, honestly. If you're going to ride often or for long periods, it's MUCH nicer to ride a bike that fits properly though. At 5'6" you'll probably fit into a 15" frame the best, but a 17" would be ok maybe, depending on the particular frame. You got a steal on that bike! It's way too big for you....just keep that in mind when you go to switch bikes later on. You'll have to re-learn some things in regards to handling when you're on the "right" bike.
The best way to buy a bike is the length of the top tube....your "cockpit". That dimension needs to fit your body well, and then you can fine tune for handling and preference with components like the stem and seatpost. Yours will be pretty long, so if you compensate with a short stem and zero-offset seatpost, you'll fit a little better but the bike won't handle as it was designed.
Personally, I love really short stems and now ride a 45mm and 60mm on my bikes.....I was used to riding 120mm-ish. See if you can find a short stem, and if that doesn't make things the best, then go to a zero-offset seatpost. A normal seatpost with 1" or so of offset can be nice to help keep your weight a little rearward but if you need to shorten things up a bunch, do it from both ends of the cockpit.
As for height, set the saddle where you want it and then work on the bars. Keep your fork steerer uncut and use spacers for awhile until you decide where you want the stem to be. You can put spacers on top of the stem, then adjust them above/below to try out different positions. When you pick one, cut the steerer and set the stem up proper. You can toy with different bars, too, but my guess is that you'll have things set up pretty low to compensate for the large frame.
Just remember....there are "ideal" fits and results, but anyone can learn to ride any bike and enjoy the hell out of it! When you buy a new bike or put one together, then you can nitpick the parts, but for now just enjoy the good deal and get out and ride! :o)