"He received me with a big smile."
Translation:Mi ha ricevuto con un sorriso grande.
Nope, since ricevuto takes avere it doesn't change to match the subject, and in any case the subject, "he", is masculine. If it was saying that "he received her" you could say l'ha ricevuta since the ending would have to change to clarify whether the l' was representing a him or a her.
Actually "the past participle may agree with the direct object pronouns mi, ti, ci, and vi when these precede the verb, but the agreement is not mandatory." Ho comprato il sale e il pepe. (I bought the salt and pepper.) Li ho comprati. (I bought them.) Ci hanno visto/visti. (They saw us.) (see http://italian.about.com/library/fare/blfare127a.htm)
Therefore, if the object pronoun "mi" refers to a female, then "mi ha ricevuta" is correct.