do it
You should definately tell her. At least if you do it now she can just walk away rather than if they had been married and she found out there would be all this paperwork and stress and it could go on for awhile.
I just got out of a relationship where I found out after we broke up that he was seeing someone else- and boy was I burned.
Unfortunately, if the story came from you there are alot of different ways she can take it: she could just shrug it off as a "crazy ex" just trying to get it on her "man". Or she may even confront him about it and of course he won't admit it, and she may even beleive him, you know how some women are...- you need to figure out a way to get him caught.
You could always....
While you guys are "doing the deed" call her from his cell - if you can- when it connects just make the as much love-makin noise as you can, then hang up. If anything he'll think that he accidentally pushed a button that connected the call.
You should really try to get him caught- women are alot of times naive, and will take a mans word regardless- if she hears it first hand (from his cell) she won't have any outside influence telling her otherwise.
I hope that helps