First, please pay more attention to posting guidelines. Your post was moved from the Introductions forum which is clearly marked as NOT the place to ask questions.
Assuming the amount is within the Small Claims limits for your area, then yes, you should immediately file a suit against her. Make sure you download some of the pictures. Also, do you have a picture of the completed dress?
You can represent yourself and have your husband with you to help.
But its not a sure thing. Was the original check paid upon delivery or when the dress was given to you? Its possible that they took it to someone else to fix what you, allegedly, didn't do properly. If she comes to court with proof that she paid someone else, you will lose.
However, since you have a letter that she offered to pay half, you should recover at least that.
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