I've had less than stellar experiences with her in the past as well. Long response (if ever) times from her and fabric that wasn't exactly as described.

Personally, I'd not let it go and keep at her. SHE has to prove she sent it, or she owes you the money back, plain and simple. Unfortunately it's too long to file with Paypal, but you could still keep at her here, and via e-mail and hope that enough people hear about it that she loses business and decides to do the right thing.

When I ship internationally, I keep the receipt until I hear the person has the item in hand, as I know it can sometimes be MONTHS. Also, as of about a year ago, all Priority mail INCLUDES some insurance with it, so she should be able to claim the insurance on an item so surely should keep the receipts!!!!!