Can I show rejected concepts as a means of self-promo?

[amlf13]

A while back I created a logo concept for an author. This logo contains an illustration I drew along with the author's name and book title she asked to be included. She rejected the logo (among others) and ended up terminating our working relationship. I showed this concept on my blog as a work feature/press release as it was picked up and published in a volume by Logo Lounge. Recently she sent me a notice to take the blog posting down as "..what you're doing is illegal" and that I don't have the right to show the concept since it's affiliated with her name.

In my contract it states the following: "All displays or publications of the Deliverables shall bear accreditation and/or copyright notice in Designer’s name in the form, size and location as incorporated by Designer in the Deliverables, or as otherwise directed by Designer. Designer retains the right to reproduce, publish and display the Deliverables in Designer’s portfolios and websites, and in galleries, design periodicals and other media or exhibits for the purposes of recognition of creative excellence or professional advancement, and to be credited with authorship of the Deliverables in connection with such uses. Either party, subject to the other’s reasonable approval, may describe its role in relation to the Project and, if applicable, the services provided to the other party on its website and in other promotional materials, and, if not expressly objected to, include a link to the other party’s website."

Rights to the client are *** later in the contract so long as payment in full is received and the project is deemed approved. She paid her 50% deposit to start work up front, but never paid the final balance due since she fired me from the project. Thus the artwork rights are still mine. My question is, does this woman have any right to tell me to not show the concept since her name and book title are part of the logo artwork? Should I be concerned that it's published in Logo Lounge? I've been operating under the pretense that I owned the rights to use it and submit it to galleries, competitions, etc. as I see fit based on the wording in my contract.

Thanks in advance.