What could she possibly have on there that could enable someone to do some evil thing with her identity or whatever?
If you go to the wrong webpage, with the wrong settings for ActiveX and Javascript, IE will drop one of a hundred nasty rootkits right onto your machine. The risk is even greater on broadband if you're not behind some kind of NAT. The really nasty rootkits ping their information back to the hacker; he just drops in and takes control of your machine, raids your files, turns your machine into a spam-sending zombie. The next thing you know you're persona non grata on the internet and your ISP cuts you off before you get them in trouble with a spam blacklist.
Look, the days when everybody knew that "Good Times" was a myth and you couldn't get a virus from an email are long over. The viruses will simply install themselves to your PC without you needing to do anything at all. Of course one of the first things it'll do is disable your virus protection software.
The worst that could happen is she'd get a virus from a geek in a garage somewhere... what are the chances of that happening?
If your computer is at all connected to the outside world, I'd say about 100% if you wait long enough. Bought an iPod lately? About 10,000 of them recently shipped infected by a common Windows virus. Every now and then a virus makes its way onto the gold master for one or another commercially avaliable software packages and infects another couple thousand people.
Something on the order of 60% or more of PC's are infected with some kind of malware. The best defense these days is a healthy dose of paranoia. Seriously. Learn to be PC paranoid.