Should a loss on a K-1 Estate rollover to Line 17 of the 1040.

Yes.

Line 17 of the 1040 is where it should go.  It gets reported on Schedule E first, then carried over.

Should I complete a K-1 worksheet and then a Schedule E?  This is from my mother's estate which we have a loss this year of 1104.

If you have a K-1 for her estate, then  

1.  Click Federal on the left-hand side menu.
2.  Click Income & Expenses across the top.
3.  Scroll down to S-corps, Partnerships, and Trusts and click Show more.
4.  Click Start or Revisit by Schedule K-1.