Ditto to PP -- See http://lsac.org/Applying/lsdas-requesting-transcripts.asp for more information.
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She said the reasons why she was rejected was because she applied late, and now shes saying its because of the missing information to LSAC (which she took care of the second she found out about it and had them rush the transcripts to LSAC for updating)
I just want to make sure she isnt lying to me or leaving out details.
Yes an no. No it won't help your undergrad degree GPA, but HELL YES!!! It'll help you're "cumulative GPA" which is a huge part of what the LSAC shows on your LSDAS file. It merges ALL schools together. That's why some guys who had bad GPA's at one school and transfer to another and graduate with a 4.0 there still can have a 2.75 on their file that lawschools see. So yeah, it may be worth it.
Like the above poster said, only courses that were completed to get your bachelors degree count. (Your first bachelors degree--going back and getting a new one won't help either.)
I'm going to make myself unpopular here and say that the answer might very well be yes. I don't think that your physics background matters very much. What schools want are people who will come in and boost their statistics. The 4.0 in basket weaving will probably trump the 2.0 in physics.
It is also a terrible idea to go to school based on the assumption that you will transfer somewhere better. Everybody's trying to do that, but not everyone can do it.