I have talked to the Blackwolf thing in the crypt and went to the yeti icecave but no priestess. Is there some other trigger here, do I need a patch or what?????

If I remember, I had to actually recieve the quest from the ghost guy...I cannot remember his name, (is that who you were referring to?? The blackwolf thing?)...
Anyway, the fighter at the end of the big tomb is the one who tells you to go and get her, then she will show up.

Did that and she was a no-show

hmmm....sorry, then. (you DID accept the quest to go and kill her, right ?) If you said no to the ghost, then maybe that would be the reason......(sorry if that is a stupid question..)

If that hasn't worked go to talk with Arundel the Druid in the village, he will inquire of your intention towards the priestess, maybe this will help.

You'll find her in the Yetis cave, it's the cave south of the statue situated close to the middle of the map. Her religion has her going about extinguishing fires and such, when I recieved the quest I wasn't sure if there had been lit torches outside the Yeti cave originally, but there wasn't after I got the quest. It looked suspicious enough to check out. You'll find her in the cave just to the right hand side of the crates.
Hint: Talk to the barkeep in Kuldahar afterward. Not the Inn that offers only rooms.

As before perhaps if you didn't accept the quest or talk to Arundel she may not appear.