Real Estate Law
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I am very sorry you are dealing with this situation. First, yes if you can ignore her that is one plan of action as she has no valid argument or standing to bring any type of action against you. However, ignoring a person who is unreasonable and may not be mentally or emotionally stable is another thing. I would suggest that you retain a local attorney to write a letter to her demanding that she ceased and desist her harassment and if she fails to do so you will have no other choice but to seek a court order instructing her to cease and desist and if she fails to comply with this order she can be held in contempt of court which can be either jail or fee or both.
Another option is to see if she will attend a community mediation session with you so that a third party mediator can listen to the two of you and come to a resolution (basically her signing an agreement to knock it off).
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One quick thing, another option you have is to write a cease and desist letter yourself and see if this will help resolve the problem. Here is a link to a form letter template that you can download and send to your unruly neighbor:
I have forwarded to customer service. You may wish to contact them as well. Thank you. Hope you resolve your issue and sorry I was only able to confirm your notion that its going to take a lawyer to hopefully stop this non-sense.