No time hath she to sport and play:A charmed web she weaves alway.A curse is on her, if she stay [stops]Her weaving, either night or day,To look down to Camelot.
'I am half sick of shadows,' saidThe Lady of Shalott.
The Lady of Shallott is experiencing both types of conflict, internal, which would be emotional, as character vs. self, and external conflict, character vs. character or the environment.
For example, the Lady locked in the tower struggles with her emotions ranging from initial contentment with her situation to desperation to escape. She knows, morally and intellectually, that she must not leave the tower because of the curse. But once she sees, through her mirror, Sir Lancelot's shiny armour, and hears him singing, she makes an emotional decision to leave the tower and go to Camelot.
Immediately, the Lady knows that she is in conflict with the curse, an external conflict. As she journeys to Camelot in her boat, the effects of the curse begin. She slowly dies in the boat as it drifts to Camelot.
The Lady of Shallot surrenders her intellect to emotion, making a poor decision in her internal conflict. She loses to the external conflict, the curse wins and takes her life before she sees Lancelot. The only gain is that Lancelot looks at her in the boat, but she is already dead.