According to snopes.com: http://www.snopes.com/horrors/ghosts/winstead.asp
"No adolescent girl named Carmen Winstead or Jessica Smith died in such fashion, in Indiana, or in any other U.S. state "about six years ago." We searched for news reports about such a death and found none. This is a fiction, a typical chain letter of the sort favored by pre-teens. Its key difference lies in its recommended mode of transmission: rather than imploring recipients to mail (or e-mail) it to others, it requires them to post it on their MySpace pages.
As is common with "luck generation" or "ill luck avoidance" Chain Letters, a specific dire outcome is promised those who do not speed the tale on its way (the ghost of the murdered girl will seek them out and kill them), with proof of the danger being flirted with provided via the included news about the sorry fate that befell someone who failed to heed those instructions (his dead body discovered in the sewer, "his neck broke and his face skin peeled off"). We discuss two other examples of this type of chain letter: one ('Bed Reckoning'); uses a seemingly spooky photo; the other ('Skinned Flick') builds upon a fictitious Instant Message exchange."