The High Court at Palmerston North today heard a neighbour of the Lundys explain how she saw a figure running on nearby Rhodes Drive the night Christine and Amber Lundy were killed.

Margaret Dance said she left her home between 7.10pm and 7.15pm.

She backed her car out of her driveway and headed towards Rhodes Drive.

"She said she became aware of someone running towards her on the footpath. Her first impression was, "I wonder what she's running away from? I thought it was a female.

"As the figure got closer I saw that it was a 'he', and that he looked absolutely terrified or frightened, a 'let me get out of here quickly' expression.

Ms Dance said the main thing that made her look twice was the hair. "It was quite a ridiculous look" , she said. " Blond hair, with corkscrew curls."

She couldn't tell how tall the man was, but described him as middle aged and overweight, with a double chin.

She heard about the deaths the next day.

She went to the police on September 5. A few days later she made some sketches of her recollections.

During cross-examination by Mr Behrens, Ms Dance owned up to believing she possessed psychic abilities, or 'ESP'. She said this gift often inspired her to draw images, although she discounted using any pyschic powers on this occasion.

The prostitute allegedly hired by Mark Lundy to visit his Wellington motel room around midnight on the night of the murders, was expected to be called to give evidence later this afternoon.