I realize this was posted a long time ago, but there is no reason a person would go "criminally insane" from changing their gender. By the way, gender and sex are two completely different things Tyler.
Hopefully you did your research and found some resources.
Just because someone has "Gender Identity Disorder" doesn't mean they are insane. In my opinion someone wanting to change their gender has nothing to do with having a "mental disorder". But it also doesn't mean they couldn't aquire or that they didn't already HAVE a disorder that you should be concerned about.
The word "dysphoria" in the trans community usually relates to how the person feels about their body. She may be angry about many issues to do with herself and how she views herself, so just talk to her and try to understand. Keep an open mind.
Hopefully you were able to find some resources. Especially now, there are more and more resources online and in book stores about transgendered people and their experiences.