I am a bit fuzzy on it, and it's been a few days, but I don't think she was deformed at all. She was some sort of caretaker for the freaks, and allowed them to play on her property.
I caught that documentry you guys are talking about (Yes, The film and this documentry are extremely easy to find on google video, public domain I think) and it is fabulous. It was nice to hear that most of these people lived very prosperous and fulfilling lives.
Very good movie that Is still on my mind. I'll have to pick it up sometime.