Wow, interesting read.

Sheldon, did you have a signed contract? If you didn't, then it's not very nice. In a project like this I seriously recommend you have a contract like mine:
http://www.talkfreelance.com/thread2745.html

My contract specifies payments throughout the project, it also has cancellation clauses and revision clauses. If you never had a contract then you have to do what the client requests, every time. You lucked out this time.

Also consider using better time management skills Sheldon, it seems like you have too many projects happening at once if you have to use a project ranking system. Every single client you have, thinks that they are exclusive to you, you have to make them feel this way, because if you don't, then your credibility is gone. Clients like to feel special, like you are totally devoted to them and their project, don't over-commit and lower your standards for everyone.

Matt, you need to be more open and have more patience, I know you are upset because this is a lot of money, but Sheldon has good explanations for every single item you brought up. You might think his msn problems are lies, but you are limited to what your opinion, and your perception, of how msn works for you. You can't assume that everyone else connects the same as you. You also need to act more professionally, your comments are totally out of line, be thankful you never had a contract with Sheldon, because I would be saying to Sheldon to sue the beejeezus out of you for your actions. Also please note that you have a design for free, you were supposed to refund Sheldon for his work up to date, but you decided to prey on Sheldons good will and steal his design and keep his money.

Both of you have made some very big, and stupid, mistakes here. Sheldon, get a contract signed every time. If you need help with a contract just ask, also sort out your client/time/communication management problems. Matt, don't assume that everyones computer systems work the same as yours. Don't assume that when you say "jump" that they can always "jump" for you. Learn to communicate your needs in more effective ways, and try to remain open at all times.