Best to figure out what the law requires *before* withholding rent, not after. :)
I also have to presume that the house didn't magically turn into a dump after you rented the place and that it had problems when you first decided to rent it.
"Do i have a chance at sueing her for the health problems that mold causes for my kids?"
A chance? Sure. But I would hope you wouldn't allow your kids to live in an uninhabitable place and would have them staying with friends-family-acquaintances rather than subjecting them to injury even if you could later sue someone successfully. :)
"How long (possibly) will the courts give me to move my things out of the house that im renting."
Can't know from here how long it might take in your unnamed area; you'd perhaps ask the clerk of the landlord-tenant court in question how long evictions usually take. (That said, you don't want an eviction judgment on your rental record).
"I had also in the past sent the rent to her certified which she wouldnt accept (she is only about 9 houses down from me on the same street)."
Presumably you kept the envelope(s) showing that she refused rent.
"... are pictures of the house going to help me establish my argument at this point?"
Can't say from here. I would hope you'd also contact the local code enforcement/health dept. folks to come do an inspection and give you a copy of the report.
I don't see anything in Texas statutes saying you can simply withhold rent (though there are repair and deduct remedies, and remedies where you could have gone to court asking for an order to the landlord to repair and asking for a deduction/reduction in rent).
Read up under Title 8, Chapter 92, subchapter B:
http://www.statutes.legis.state.tx.us/
Can't know how the eviction hearing will turn out. You may want to seek local counsel.
