You guys are great! I wish I had consulted all of you before I ever agreed to give this woman a dime!
I will give her a pass on some of the weird behavior because her DH is currently deployed, and goodness knows I didn't always have my head on straight when my DH was deployed. Thankfully there are other, more sane mamas whom I've befriended in the meanwhile. There are definite benefits and serious drawbacks to living on a military post, and one of the main drawbacks is having to interact regularly with people like this woman.
Yeah, it seems like living in a smaller community such as this can get a little uncomfortable at times. But as a PP said, I doubt you are the only one she had been irrational towards.