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I prefer it as a nickname.

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As for spelling, I'd stick with Ro. Roe makes me think of Roe v. Wade. Also, Ro looks a tad more feminine since Joe is usually used for males and Jo for females - not that it matters tremendously or anything, though.

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Other full names:
Rowena or Rowenna
Rowan
Rosemary
Rosemarie
Rosalie
Rosamund
Rose
Rosa
Rosabel
Roselle
Rosario
Rosaria
Rosanna
Rosangela
Rohesia
Romina
Romana
Roma
Rochelle
Roisin
Roxanne

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And just about any other Rose name.