Oh the joys of having a grandma next door with her daughter and her kids there constantly.
Been there..done that. We moved! Seriously we did. But ours was a more serious situation because the grandkids next door ranged in age so my kids played with the younger kids outside but the older ones would come by and were talking very sexually explicitly with my kids...and on multiple occasions the older boys tried to touch my daughter. We called the cops on them...and it still happened again. All these incidences happened when kids were being watched and checked on. We moved. But before we moved my husband(after many talks with them) told them in no way shape or form are the grandkids allowed on our property and our kids will not be playing with them. They broke our trust one too many times and the kids need therapy...but you can't help people that are in denial.
It was a sad situation because we loved our gorgeous home...our other neighbors. But God sent us a lifeline with a job promotion and the company moved us and bought our previous home....in this market it really seemed to us as a gift from God.
Ok...so that is my story. Sorry that took so long to show you that I understand your feelings of being suffocated in your own neighborhood....in your own home...not wanting to make eye contact. I felt trapped that we couldn't play outside for fear of the kids running out to play...or when we played in the backyard the grandkids played in their yard and were constantly yelling over the fence to play. Arghhh...this is bringing back memories.
I would do the broken record reponse as mentioned before. Plan outings away from home often and don't tell your child ahead of time so as not to blow your cover. Smile and wave as you pass by in your car or as you hurry in your home. I put signs on my door that said "Thanks for stopping by but we are busy and cannot play now." and on the other side it said "Thanks for stopping by, we can play." We rarely used the latter.
Oh...I can just feel your dread as you drive into your neighborhood and see them out on the front lawn and running up to your car to play. I have been there. Don't worry about school. The odds are they won't be in the same class...and the neighbor kids will have a whole playground of kids to play with. Your neighborhood is isolated and your home is just a beacon for them to run to because it has kids.
Good luck. Breathe..one...two...three... and set your boundaries. When you do have conversations with neighbor..steer the conversation away from gossip..away from personal info..keep it very superficial. Soon your relationship should change. Stand up and just say let's not gossip about others. She should get tired of not being able to dictate the conversation.