Extremely Petty Neigbor during Renovation - what to do?!

[Jim Goebel]

So, wow.

A neighbor next door, let's call her Jewel-EE - seems to be on a mission of sorts.  That mission so far as I can tell is to be as silly and petty as she possibly can be during the process of us renovating the house.  Most of the items so far have been related to property line disputes, and a 'stay the F off my property' was muttered (from her). This is after in good faith early in the project I've offered use of my bucket truck, and free tree trimming, among other things.  Now I feel like threats are more apt after some of her behavior.

In addition to needlessly 'chatting up' my workers, she seems to be obsessed with things of little consequence such as limbs falling slightly on her property line during the process of us doing tree work.  In all but one occasion the actual consequences of these actions have resulted in slim to no actual effects.  

Today when bringing up the fact that the renovation of the 5 year vacant adjacent property (our project) was increasing her property value by north of $10,000, that was met with a predictable 'Don't act like you are doing us any favors!'.

I am of the opinion that this Jewel-EE has some sort of a complex that has resulted from growing up with a silver spoon in her mouth coupled with the realization at some point that her silver spoon in her mouth has no ability to help her deal with actual reality.

Has anyone dealt with busy-body neighbors during a rehab?  How do I properly ignore and tune her out (or is this the right thing to do)?  I'm seriously considering trimming a tree on our property just on our side (limbs encroaching our house) and leaving the rest of the limbs that are encroaching on hers simply to signal that we don't HAVE to help her and I'm feeling awfully... unfriendly right now.