Stressed! PLEASE Respond with advice

I took a job babysitting for a single mother. I worked for her and she paid me cash. After about 7 months of working, we got into a small indiffernce on schedualing and she fired me. She had paid me up front for two weeks that of which I only worked 1.5 of. I owe her the rest and I sent her a letter stating that I will pay her back on by the end of this month. However, she claims that I "stole" the money and that I am a criminal. She also claims to have taken out a police repost on me for theft. She paid in check. She allowed me to cash it...how is this theft? I dont understand! I never did anything wrong. She says that she will sue me if I dont pay her an exaggerated amount of money. (she added like 1,000 to the actual amount I owe her). What should I do? She is also attempting to intimidate me in harsh letters. I am just a college student and she is pretty wealthy.

[randalljd]

That is not theft--she is wrong; just pay her back reasonably soon when possible.