Apart from watermarking your images to prevent future theft (I don't watermark either--hard to display photos like that) you really have three choices.
1) Chalk it up to experience and move on. Until people become more undertanding of digital, they will "steal" images when they can. (In my experience, even "good" people just don't see the harm. Digital images simply have very little percieved value in most folks minds.)
2) Explain to your customer that what they did was wrong and request that they pay for the images.
3) See how #2 works out. If it doesn't, then send them a real bill, in a real envelope (no email) for the images use, charging them for their use of the image. Explain that they have infringed on your copyright and that you are sending a copy of the bill to your laywer.
Now, I don't believe you have much of a legal case (their holiday card use didn't generate any profit you should be entitled to) but it may get their attention and/or sympathies and prompt them to pay you something.
But, keep in mind that, especially if you live in a small community, this may not be worth it. You may just piss them off, to which they will just bad mouth you with everyone they know. And here is the real kicker, because of how most folks feel about digital images (see #1) many people will take her side of the argument and you will wind up being the bad guy.
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