Quilt Addict - personally, I like #2
Jaba - I have the same problem with customers sometimes. They have a general idea, but don't know how to execute it, which is where we come in with our creative minds. I think you did well with offering to let her choose the focal fabric & you take it from there. Customers like that are pretty easy to please as far as design goes, but until you communicate further, you'll not know what she has visioned it to look like. I agree with Elisabrat, don't give your time away. You're taking time away from something else to do this quilt for the lady, charge for the inconvenience.