I would like to clear something up...my husband and i introduced her to this priest and recommended her per say as a woman who was interested in becoming catholic. We had many ties with her within the church and she even lived on our property twice to help her out, but now that we see/know this about her we feel it may be our duty because of what I stated above.
I want her to be saved but i don't want her to come into the church as a pretender with our knowledge and that somehow be on our shoulders for not telling what we know.
Would it be any different if someone wanted to be baptized but did not repent of their adultery or alcoholism, etc and you knew but made no mention of it to anyone? Would that person be liable before God? That is our biggest concern...her habitual lying is very concerning.

You would not be liable before God.
The baptizing priest is liable to vet adult baptism candidates.
If you are still concerned, speak with a priest in the confessional.

A good example of a narcissist, sociopath and, possibly, a psychopath, is a woman on this forum whose initials are "AG". 

This video helps explain the differences well, from a Catholic perspective:
https://youtu.be/Ux4duSamw68

It, also, unwittingly, describes jews to a T. 

I would like to clear something up...my husband and i introduced her to this priest and recommended her per say as a woman who was interested in becoming catholic. We had many ties with her within the church and she even lived on our property twice to help her out, but now that we see/know this about her we feel it may be our duty because of what I stated above.
I want her to be saved but i don't want her to come into the church as a pretender with our knowledge and that somehow be on our shoulders for not telling what we know.
Would it be any different if someone wanted to be baptized but did not repent of their adultery or alcoholism, etc and you knew but made no mention of it to anyone? Would that person be liable before God? That is our biggest concern...her habitual lying is very concerning.

You did your part now shake the dust. Concern yourself with saving your soul and those of your husband and children and pray for her but beyond that, as much as possible have nothing to do with her. You cannot really compare this situation with baptizing anyone so forget about that. 

Telling the priest your concern regarding this psycho would be the prudent thing to do so the priest doesn't get blind sided. The reason for telling the priest is because she has many ties within your Church and it only takes one determined person to stir up trouble and cause chaos and division within the congregation, since the priest is the authority it's best to let him know. If he's been around for any length of time, he most likely has experience dealing with this type of situation and should know how to best remedy it.

That's my free advice. 

In that movie "One Flew Over the Cuckoo's Nest", Martini wanted a hotel when they were playing monopoly, but it wasn't his turn and he didn't have the money, but he just kept grabbing it and grabbing at it anyway. He'd pick that red hotel out of the box and say with his own satisfaction, "hotel, hotel".

Then an exasperated and irritated Harding would say, "what are you doing? You do not have a hotel there. For the third time, you do not have a hotel on Boardwalk. It costs $1,000 and four green houses to put a hotel on Boardwalk".

Harding would take the red hotel away from Martini, and put it back in the community box. Then when Martini had the chance, he'd grab the hotel again an try to put it back on Boardwalk. So it goes.

I am sure it was not unwittingly.

At the time that she rendered that great analysis, she was, unfortunately, pro-zionist. Maybe not so much now.