Aly:
I agree with everybody's advice and have one more thing to say. Don't let anybody, at the shelter or the woman who gave up Lolly, send you on a "guilt trip." Because you are such a nice and caring person, you may feel sorry for that person. But you don't have anything to feel guilty about if you refuse any contact with the former owner. You gave the pup a loving home, now she is your baby and you would'n want anything to stress her and bring back bad memories.
Let us know how you solved this problem.