Nah...you were fair. He was just being an idiot. I still wish i had clients like him tho...lol. Though I would do the same. I also understand the guilt u might be feeling but dude, don't. Some ppl are plainly hard and unfair to deal with and I'm the 5th freelancer who agrees with ya. So don't worry. maybe send him the link to this tread let him see what others think of the situation.

On a side note:
I really don't like the idea of discussin work on msn because it's easy to be or get misinterpreted. Best thing is to do it via e-mail and let him write what it is he really wants. That way you have an e-mail to show as evidence of what was stated.