I know right where you are coming from. I am working on a project for a global consulting firm and the pastel colors they want me to use together are hideous. It is making my killer design look like someone threw up pastel crayons all over the place. The hardest part is that they LIKE the way it looks. Also they want me to use photos that were taken in the 60's. For this I am having the photos restored and enhanced but you can only do so much.

Ultimately it is my job to make the site look good to me, them, and their target audience. The method I am using is to bombard them with presentations of different designs that use their colors but don't look terrible. They appreciate all the extra work and as long as I make it seem like a standard procedure to build dozens of site presentations for them to review, they will not be offended at my distaste of their taste.

A middle ground will be made in the hopes that I can add their site to my portfolio; however, if the only way I can make them happy is to make a seriously ugly website, then so be it. I will be paid and they will be happy even if I cant add it to my portfolio.