http://img213.imageshack.us/img213/7159/screenshot5vh.jpg
This was after a particularly intense fight, where my mage was throwing fireballs left and right. I guess I got a little to close to poor old Lydia.
I could have gone back to a previous save, but I was getting kind of tired of her sarcastic "I am sworn to carry your burdens", so I let her rest in peace (pieces?). Nice thing was, somewhere in those ashes was all the loot she was carrying for me, in pristine condition. :thumbsup: