That is absolutely not true. I've been in groups where members were attacked before we even knew she was there. They were Druids and I'm pretty sure they were in wolf form at the time, but they definitley did not attack her. Both times we were already fighting something else.
I was hunting near the tunnel with a 41 pally and we both were in wolf form. We heard her shouts of Foolish Mortals....and the power of Veeshan.. anyway. Off in the distance we see her. She was huge! Both me and the pally con'd her and to me she was doubious and to the pally, she was threatingly. I told him to drop wolf form and check..oops. He did, but from 1/4 way across the zone she had already agroed on him. I started to evac, but she is as fast as sow or there was a warping problem, because I no sooner had started casting evac when I hear her come running up (sounds like a giant running) The pally had already hit his Jboots, but she was still as fast. She bashed him for 340pts of dmg and then lets forth a mighty roar (dragon fear) we both loose control and are feared. Luckily we thought fear runs us into the tunnel. We hit a wall in the tunnel, and it turns us around and runs us straight back into her waiting claws..yes she can get into the tunnel. She slashed the pally for 560pts damage and the pally dies (he was already down 2 bubs of life from fighting a gaint) I am still feared...I am awaiting my rendering, but she did not summon me or chase me down. But while feared, I agroed one of those nasty spiders. I snared the spider then gated out. Picked up the pally and get his corpse. We both see the dragon and again and we both consider her again. The pally is amaible and I am kindly. So if she is out wanding in the dreadlands, DON'T use wolf form!
She didn't care too much for me as an Air Elemental (Enchanter) either - DOH! Took a 400, 300 and 133 hit in an instant. I suggest forgetting all illusions in Kunark
I've always found it to the North of the tunnel mouth coming out of the teleport area running towards Kc in the east. So if u don't want to **** it off by going near in wolf-form or want to go near it to have a look, most of the time it's just a few paces North from the cave mouth where the Bard who attacked me all the time when I came out.... Im a troll.... and the dragon isn't KoS to me, but I haven't gone up to pet it's belly yet so I dunno for sure.