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lammert - 1:29 pm on Jan 20, 2008 (gmt 0)
The only thing which is stopping you right now to send the invoice is that you are affraid of loosing the relationship with your friend. Skip that, your relationship is already damaged by this affair no matter if she will pay or not. Actually the best way to keep the relationship is send her the bill and get her pay it. If she pays (and you might be surprised, but IMHO there is a good chance she will do because of possible legal consequences if she doesn't) the problem is solved and your friendship can continue further. If she doesn't your friendship will probably be lost (which may have been the case already) but you won't blame yourself for the problem but them, which is psycholgically a great benefit to step in future projects.
There is still a proposal she signed and a website you created. Just send the invoice and treat it like normal work for someone you don't know. It is not your problem she wants to replace your work with free work from someone else. It is her problem that she has no money.