"It is very satisfying to know that the whole neighborhood cannot stand this person and label her has snobby ****. At least I know it is not me."
From what you've just said, all of your friends are becoming friends with her and turning their backs on you. She even stopped being your friend.
You complain that she's bitching about you. What have you just done here?
Are you sure it's not you?
I think you need to give a good smack down to put her in her place. You know, hair pulling, clothes ripping, etc
She's clearly out to get you. She and all her friends are out to get you. You may THINK you have friends in the neighborhood who support you in your epic battle with your former friend, but they are not really your friends. They are spies for the Snobby Bitch.
I'm sorry to have to tell you this but even random people you meet while you're out shopping or at work or wherever are spies for your dire enemy. In fact, she has enlisted some very well-known people to spy on you and report your movements back to her. Tom Cruise is one o f her spies, as is Hillary Clinton. Barack Obama is considering becoming one of her spies but he has a lot to do, what with the upcoming inauguration and moving into the White House and all. However, he's definitely on her side.
To make matters worse, she has bugged your phone and planted hidden cameras all over your house. The other day when you were on the toilet and you had a funny feeling that someone was watching you? That was her. She made a video of you sitting on the crapper and she's going to post it on YouTube.
Act now before you become a complete laughingstock. Get a gun and go settle this thing once and for all.