It sounds to me like you are making the best of a very hard situation.  I'm sure that if you felt this person was responsible enough to care for the puppy correctly, you would return her until she was bigger.  It sounds like you have your ducks in a row as much as you can.  Good luck with her - keep us updated too!
  
(I love the name Jewel - it was in the running with Tia 

)