I agree with hsmyers and remind you that you were honest with your direct contact. Your client (or boss) knows exactly what happened in the situation. She has to have some of the responsibility for the decision. I believe that it is her job to determine the right course of action and merely your job to implement that solution. You have not blatantly mislead anyone (except for maybe NetCraft, but that's a different story). I find business to be shady at times, but that's life.

-Rg