That is horrible! I'm sorry that there is a nasty, petty woman trying to hurt you and your business. Unfortunately, the reason I quit my last job was because the place was filled with women like that and I couldn't stand them any more.

I learned a life lesson working there for so long though and made myself a promise that I will never again let people like that bother me because it isn't my problem that they are terrible people, it's their problem. I will never let anybody in my life again who hurts me emotionally. I certainly weed out any parents at interview time that give me that kind of vibe.

Try not to worry about it because it is her problem, not yours and you can hold your head high knowing that you are the better person. Be proud and confident and smile! If she puts anything bad in writing, even an email you can tell her you will sue her for slander but otherwise, don't let her bring you down.