Ah, the old neighborhood problem rears its ugly head.I hate to tell you this, but in short you may be heading into problems that you never thought possible.There really is nothing worse than an ongoing battle with a neighbor, makes you want to saddle up and move on but you hate to give them the satisfaction.
If I were you,before problems get out of hand, check into your local ordinances.Noise pollution,working hour restrictions,business out of your home,etc.Forget asking the local cops, most know the laws of the area that they are in,but nothing is worse than spending countless hours and dollars in your new business then get shut down by a little known and enforceable law.
Go down to your local city or county courthouse and ask for some help.Have them show you in writing what the restrictions in your area are,and dont take no for an answer.It has been my experience that most folks are understanding and are willing to look the other way if you are running a business out of your home as long as you are reasonable and are willing to maybe hand out a freebee once in awhile.
Our craft store started years ago out of our home,grew into a small shop behind our home, and all of our business shipped via UPS.Freight trucks stopped and plugged up the narrow residential street we lived on, and it was plain as day that at times I made a nuisance to our neighbors.I then distributed a flyer to everyone on our street a month before Christmas that I was offering free shipping for anyone that wanted to send gifts to out of town relatives.Sure, it cost me almost five hundred bucks,but the scowls at the freight truck turned into freindly waves and I had zero complaints after that.When we moved from that little neighborhood a lot of neighbors helped to pitch in and load the inventory,and not because they were glad to see me gone.They really seemed sad to see us go.We also from time to time would leave baskets of candles and fragrances on the doorsteps of our neighbors as a continuous sign of good will.
Since your neighbor burns wood, pick a time when she is out in the yard and looks to be in a good mood.Maybe a truck load of wood will sweeten the old gal up,it never hurts to try.
I can feel your pain buddy, I really can.I have been involved in a three year battle with one of my neighors now that never ceases to raise my blood pressure,yet I have done everything I can to dampen the old guy.Thankfully, he has a problem with everyone in our area so I really dont lose a lot of sleep on the issue.
Do what you can to difuse the situation,check into the laws in case you need some backup,and do your best to work with your neighbors.After all,if you cant have peace in your own home,where can you?