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Okay. I got a slightly damaged book, which is readable, but I would not repost it for fear of having the next person get angry with ME for its condition.
I gave the sender the option to return my credit or not, but I wanted to let her know about the condition of the book so she would be aware next time.
She returned my credit, but wanted the book back. I no longer have her address anywhere, right? So I PM'd her for her address. Is there any other way to do this or is this what I should have done?
Yep, that is the right way to do it, but you are not required to return the book. As per the Help Center:
so they would either need to send you 2 credits (one for returning the credit for sending you a bad book and one to pay for postage), or send you 1 credit and money for postage.