So long story short. I spent $675 just for her to shaft me.
I hope to bring this issue to the attention of her future commissioners with the hopes that she doesn't do the same thing to them.
Pics as proof
Her operational policies and procedures - http://b.imagehost.org/0746/payment2.jpg
Log of the agreement to do the 11 pages of sketches and $400 return for not doing inks - http://b.imagehost.org/0129/4_6.jpg
Her stating that she's charging me for thumbnails - http://b.imagehost.org/0666/6_18.jpg
Her denying me the full $400 return - http://b.imagehost.org/0189/3_11.jpg
Her denying me my commission - http://b.imagehost.org/0779/5_6.jpg
Edit: Whole chat logs, instead of the abridged versions
Log of her stating she has an issue with the commission and the agreement to do a substitute - http://b.imagehost.org/0185/3_5.jpg
Log of the agreement to scrap the substitute and do the orignal 11 pages and $400 return - http://b.imagehost.org/0978/1_1.jpg
Log of me informing her that if she doesn't want to remedy her mistake that I would inform the Artist Beware community - http://b.imagehost.org/0135/2_11.jp
Uploaded a video scrolling through the chat logs if you feel that still images are too easy to edit