The unfortunate thing is that confrontatio in any form would just cause major problems. They aren't the kind of people that go away. Besides all of that, our oldest sons are friends.
We were never really friends, but they would call us over if they saw us in the driveway, and this house has been in my family for years. It was my grandmother's. My family has known them for 14 years (since they moved in). We aren't the only neighbors that have problems with them. I have had the worst problems though.
While I haven't completely transformed into superbitch, I am VERY stand-offish to her. Open the door a crack when she comes over instead of asking her in, always saying no to whatever she is bumming, etc. It has at least slowed her down a bit... she only comes over like once a week now, and sometimes, it's to smoke with us.

Was surprised most people get along with their neighbors.

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If you won't listen to reason, there's always... Towanda!... Kathy Bates~Fried Green Tomatoes