No it doesn't. :| Not sure if she was evil in a innocent form or if she really was trying to help the people of the Valley.
What pisses me off is.. The wiki told me to load my game after and her knight dude will drop his armor and disappear after killing her.. I did and it started me out at the beginning of the zone. No problem right? Wrong.. her tumor babies killed me before I could get to the item on the ground and I lost it for good. :|