Thanks everyone for your responses. I was so angry yesterday and I feel better just having "talked it out" with you. I am new to the daycare business and have been lurking on these forums for a few months. What a wonderfully supportive and informative group you all are. I am so happy I have found you!
Part of the reason I was so upset is that I have been putting so much effort into my program in terms of activities, art projects, education at circle time etc. I felt let down that my friend had such a negative attitude when I have been working so hard.
I know business and friendship is not a good idea. My friend was really in need though and I love her little girl (my daughter loves her too), so I took her against my better judgement. I don't need to take her on for my income, in fact her two days a week take away from a full time spot I could fill. If I experience another reaction like yesterday I think I will tell the mom that I can't provide the type of care she is looking for. I do feel sad for the little girl though, she definitely is a "bubble wrap" kid and doesn't get any other opportunity to play with other children. I guess we will see how it goes, but I will not tolerate negative comments about my child from a friend; I had never experienced this before and holy momma bear did it make me mad!