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http://marketingtechblog.com/2007/12/14/letter-to-bad-client/ -
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I like it. I would reword the first two paragraphs something like this:
"Back when you selected us as your vendor, you asked a multitude of questions and dragged us mercilessly through miles of red tape, made us list in detail our respective responsibilities and not until you had a complete detailed statement of work that you agreed to did you decide that we were the right solution for you.
Now that you’ve chosen us, it’s not our fault that your business problems have changed and you are now unhappy with the very features and functions that we mutually agreed would solve the problems as you defined them then. We didn’t lie. We didn’t misrepresent. Your circumstances and environment changed.
Now we as a team should be regrouping and should be focusing on
how to quickly develop a viable solution to the reshaped business problems.....................