Litalia's backstory has been completely rewritten between G3 and G5. In G3 she says that, as a neophyte shaper, she was taken on a mission to kill serviles and shape new ones by her Watcher (a la Shanti in G2). She did so, felt guilty, tried to kill *him* (emphasis on the gender -- her watcher was not Shanti), failed, then fled and was found by Ghaldring in the woods.
In G5 she implies she was a full shaper ("making the required hordes") before being sent to "a village called Drypeak" to deal with "a rogue shaper." The fact that she was sent to just the village suggests that the G2 PC actually died, because the other endings either involve Drypeak Village becoming irrelevant, or are noncanonical for more obvious reasons (eg, barrier of the winds).
Anyway, in this new story she slaughtered all over Drypeak Valley until she met Ghaldring in the underground lair where he had been incubating.