It's already screwed up. Call me Debbie Downer on this one, but this wasn't good. I like the name and the creepy nature of her character, but the scene was a BLATANT SHOT FOR SHOT RIPOFF of Hogan/Warrior from 1998. It didn't work then and it's not going to work now. You would think that 12 years later, we'd go farther away from unrealistic gimmicks, especially with the "real" nature TNA is trying to put forth as their backbone.
Now, before people jump on my back and compare the Undertaker stuff to this and say I'm all WWE, I hate that too. Wrestling has long since moved on from that sort of stuff. I just don't see how you can be "moving forward" by using stuff from the past. It's not right.
With all that said, I've always liked Katie Lea and her intrigue factor is great. She has a unique quality to her and that should serve her well. Just go less science fiction/Ultimate Warrior with her gimmick and you might have something.