Thanks guys, this is really helpful.
I'm putting up a lattice fence on one side of the coop to shield her view and hopefully diffuse the situation, and I'm going to plant ivy to grow up the fence eventually so it should be pretty.
And no - I never ever plan on bringing her eggs!! I'm sure she'd suddenly come down with salmonella and it would be my fault. Yikes!
But I had planned on bringing the other neighbors who have stood by us eggs.
I think most of the neighbors think she's crazy and mean. My immediate neighbors (except her, of course) love the chickens and think she's nuts, so at least there's that...
I still hate the fact that this person is talking badly about me and in general spreading her bad juju, but I'm trying to shake it off.
Like water off a chicken's back, right?!?
I love your idea of growing ivy on the lattice and that will be nice year round coverage. There are some great books on landscaping specifically for chickens that you may be interested in to increase that visual barrier and give you plenty of opportunities to utilize all those droppings if you're not already composting it to fertilize gardens.