I have been to the small claims court on about 7 or 8 occasions now (well not quite true as most companies pay up as soon as they get the paperwork, but been in court 4 times) - all as claimant and won all but 1, I AM NOT trying to worry you but just want to make the point is you are in the right and have reasonable proof of that you will win.
Some of mine were petty but making a point and with two exceptions all against big companies. The one I didn't win I got about 50% of my claim plus costs as I couldn't prove when my pictures were taken.
If you give up now then she has won. The fact that she has let it drag on so long also will count against her.
Good luck.
W.