I've only been to small claims court once. I had pictures as proof to counter her claims. I did not think about charging for my time, etc. However, I was able to charge interest on the money due to me. Whatever you're going to sue her for, it must in the claim when you file it. You can't easily add it after the fact.
If you're not REALLY needing that money any time soon, go with the lien and forget about it. In Alabama it's called a Contractor's Lien. It will stay until they pay. It puts a "cloud" on the title of the property and that property CANNOT be conveyed (sold) to anyone until the title has been cleared.
But if you need that money now, sue her in small claims court. In Alabama you don't need a lawyer. It costs just a few dollars and if they fail to show up, 99.99% of the time the court will rule in your favor.
I really like alot of the suggestions in this thread. I'm takin' notes! Thanks everyone.