TranscRip-off?

In May, I responded to an ad by someone looking for help transcribing audio files -- podcasts, conference calls, focus groups, etc. I was liking the idea of earning a little more money to throw at my bills, doing something I could do from home. She hired me.

She said she always paid on Mondays. Fine. My first payday Monday came ... and went. No payday. She volunteered that she was waiting on payment from a client, and sure enough, a few days later I got paid (PayPal by mutual agreement). She continued to send me files which I continued to transcribe and send back.

We've done everything via email. I have two or three messages from her telling me how great I am, how wonderful my work is, how her proofreader complains that looking for errors in my work is boring, etc.

Time passes. It gets to be earlier this week, and I've never been paid again. She says it's because of one client who hasn't paid -- she's waiting to pay me until all the clients I've transcribed for have paid her, unwilling to even pay me for the stuff SHE's already been paid for, because ONE client is dragging his/her feet. Then she keeps sending me stuff to do!

...the hell? What kind of business model is that??? I have a Master's degree in Management, and I don't remember that one from any of my classes.

Things seem to have come to a head. Wednesday (as in day before yesterday), she asked me if I was done with a file she'd never even sent me. I replied that I never received a file by that name and that, also, since it had been nearly three weeks since I'd been paid, I think it would better if I didn't take on any more work for her until the payroll situation gets resolved. I haven't heard one single word from her since that.

I've checked PayPal a few times each day since then -- no deposits. I've checked my email religiously -- no explanation, or even a "go to hell" note. I'm starting to think I just got hosed out of two and a half weeks' worth of work, and all because she feels like it's easier for her not to pay at all until all the clients pay.

I hope it gets resolved and soon. The work is okay and I even enjoyed it in a way, but the whole point was to bring in a little extra gelt, not donate my time to growing someone else's business. If she totally flakes on it, I won't be out so much money that would be actionable or even anywhere close, but it's a little chunk of change I could use.