Neigbor Harassment

My husband and I brought our home 5 years ago. Since we have moved in we have been harassed by our neighbor. She even tried to put a restraining order on us (Which the judge threw out of court) She has called us names from drunks and even yelled at us to get a job (Which both my husband and I have) We have 3 children who are affraid to play in our own yard because of this neighbor. We have had police officers come to our home for numerous things. When we brought our home I was diagnois with hodgkin cancer and had to under go chemo, I have been in remission for 4.5 years now. But my 8 year has become sick with Alopecia which is caused by stress. Our friends and family are affraid to come by because of this neighbor. She has taken pictures of guest that parks in our driveway as well as calling the County to investigate what we are doing. Our latest crime happened on Saturday which she yelled at us and shot me with her garden hose as well as yelling at us that we are drunks, I for one don't drink. I just about had it with this neigbor and the visiting of our police officers. Is there anything I can do, or is there somewhere that I can find out our rights. We are in the process of selling our home because we cannot enjoy our living situation here with out fighting with our neighbor daily.

Ideas:
Be sure you have a privacy fence between you and your neighbor.
Consider getting a restraining order.
Sell you home.
Stay out of the way of your neighbor and ignore her as best you can.
Take pictures of the events.