Although Babe is mentioned in the Swept Away quest, she is not directly involved. Maggie remarks during the 2008 Hallowe'en event that Babe has 'the sniffles' which is why she can't go trick-or-treating.
Babe, and the rest of Maggie's camp, were once located east of the Crafting Guild, but after the end of the 2008 Hallowe'en event, they moved to the west of the Legends' Guild. Later they moved to the field south of Draynor Village and after the release of Divination they moved to the north-west of Draynor Village.
Babe sneezes all the time, which bothers Norman. Maggie advises not to come too close to Babe, because she still might be a bit contagious after she gave her a portion of goulash.