That's really interesting! Does she retain any of her past memories? Is there a curse, or some reason behind why this happens to her?
Well, the "reason" is that it's a cure for my tendency towards "restartitis."
Yes, she remembers. There's a dreamlike quality of the memories, and the fact that she is thrown back into the world with essentially nothing is frustrating to her. She remembers the chest hidden in Vilverin, and tries to make her way there. It contains lightly enchanted items or valuables relating to whatever was her best-developed skill in her previous "life."
The only major skill which she always has is Restoration (a quirk of her Restoration talent appears to be causing her to be reborn when she dies.) Even her Birthsign is different. And her skills and attributes are randomly generated, so the result can be a character who is quite difficult to play. I use a mod called TUStartingOptions, which allows me to start at a randomly selected location, often in danger, but this general idea could be implemented from a save at the tutorial exit. The mod makes it interesting; it can be quite challenging to start a new level 1 character deep in a vampire-filled fort somewhere in the middle of nowhere!
This was inspired by the old RPG http://en.wikipedia.org/wiki/Planescape:_Torment, where the hero keeps getting reborn back in the morgue.