Had to refund a "donation" pymnt :(

I'm still a beginner at cake decorating. I usually just make cakes for friends and family. I would like to start a cake business someday so I've been "practicing" having a real cake business by making general cake contracts and providing diagrams to what might be potential customers (my friends/family). I do not ask or expect payment for any of my cakes. Some people have been generous and given me a small gift as a thank you for the cake. A girl who used to work with me was getting married so she asked me to make her wedding cake. I told her that I had not made a wedding cake before but I agreed to do it. She said it was a SIMPLE design. I had a consult/tasting with the bride and MIL. Her simple design turned out NOT so simple! She wanted black freehand scrolls and a fondant ribbon with a large fondant bow in front and the bow/ribbon had to have a deep gold color and shimmer. I told her I would try to do this. She understood I was still beginning and that I was not expecting payment. MIL insisted that I take atleast something to cover the ingredients. I told her that I did not feel comfortable taking money as I was not legal yet. When she left, she gave my 9 year old daughter $70 and told her to give to mommy as a thank you. Well, I made the cake as best as Zi could and delivered it to the venue. 1 week passed and I get a call from MIL. At first she wasnt making sense because she started telling me how bad the pictures were and that they were dark and thet maybe she should of paid $1000 for s photographer. When I finally got a word in, I told her she had the wrong person. She said "oh, no honey, you are on the list too!" she started saying that the cake looked really bad and it was NOT at all what she or the bride were expecting. She also said that the bride did not say anything about it to me when she saw me the following week because she did not want to "get into it" with me. She wanted to know what was going to be done about it. I apologized that she felt they way and reminded her that I was still new at this and she was aware of it. I told her that I would send her the $70 gift back since she was so horrified with the cake. I assume that this is what would of been done in a real cake business, correct? Customer is always right? I guess I've already had my first bad experience and I don't even have a business yet. Im feeling very sad and unworthy right now. Sorry so long and thanks for reading! Cake is in my gallery if you wanna see how bad it is. On second thought, I might post under disasters

All4cake: LOL! your comment made me laugh...I needed it.
I asked the MIL how the cake itself was and she said, "it wasnt that bad however, I really liked the strawberry bottom tier". Even though she liked the strawberry tier, she was still upset at the design itself. I have attached a pic the picture that she wanted me to duplicate, only thicker fondant ribbon and freehand black scrolls (I hope it posted). I told her that I could not duplicate the cake exactly but I would try my best. She said "that's fine. Most of my family either doesn't like cake or are diabetic so cake doesnt really matter to us."
I just don't get this lady! She KNEW I had not made a wedding cake before and that I could not charge. Even when I told her "I will send you your GIFT back", she said "Well, I will talk with bride and tell her that this is what you are going to do. I'm not sure if this is ok with her. I do not want to worry her with this now as she is on a honeymoon, which had to be local because she spent so much money on her wedding. Anyway, we regret NOT spending the $500 for a wedding cake. The mailing address is ........". I guess I was so taken aback that I didnt even think to tell her that the person being taken advantaged of her was ME. Thanks for all your support and advice!
Fedra

I guess it didn't post. Here is the link:

http://static.weddingandcakes.com/wcakes/2010/08/gold-wedding-cakes-3.jpg