I haven't read all the replies to your post so I may be repeating here, but I would ask her other than releasing the images, what is it going to take to make her happy? Make her as happy as you can then just forget about it and don't deal with her any more. If she wants to take it to court I don't see where you'd have a problem.
I have been self-employed as a computer tech for almost 8 years. In that time I've learned that some people cannot be pleased no matter how many hoops I jump through. I also realized that sometimes you just need to part ways with clients as it's not worth the stress and time involved.
I had one shocked client tell me "I've never been fired by a contractor" when I told her she needed to find another tech to support her business.
Life is too short and you don't need clients like this. Get out from under her as quickly and inexpensively as possible.
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