I remember Peggy from when we both lived in the ashram in San Antonio, at COLL in the mid-70s.  I have the same memories as you -- a very sweet person, very funny, no pretense, and she also played guitar and sang.  I don't remember her being an Initiator, but that doesn't mean she wasn't.

I heard she married a wealthy and somewhat honcho, premie, whose name I do not recall, but other than that, I don't know what happened to her.

I found this picture of Peggy on the internet from COLL, circa 1975.  Hit the link, her picture is at the bottom.