I'm working from memory here, so sorry if I'm wrong... But when Lilah (otherwise known as bird lady) is stoned to death, Rhue is standing pretty close by, so I would have thought that her aura would have been absorbed by the sword.
Despite this, I never saw her in Dream Estrana... i understand that just because she didn't appear, doesn't mean she wasn't there. But in addition, I seem to recall talking to Sacrifa and his awareness of her death coming up in the conversation (indicating that he didn't believe she was there in Dream Estrana).