I once worked in a kid's day treatment unit as a teacher's aide. Frankly, your co-workers behavior reminds me of similar tactics used by the children. She's obviously very immature.

These kids had been kicked out of their regular classes for their behavior issues. They were all different in their own way, but they all had one thing in common with each other and your co-worker. From the outset, they do something outrageous (in your co-worker's case, making sure you look bad, but same principle applies regardless) to get a response. In their old classrooms, that usually resulted in an adult shouting, making threats, and/or sending them to the office. The child now has the satisfaction of controlling the adult/adults. Your co-worker is needing the satisfaction of disrupting either you personally, or the process you are trying to achieve. I don't know enough details to speculate on that one.

As crazy as it may sound, no matter what a child does, the adults working there did not react. I once had a kid throw a chair at me. I calmly told her to put it back where it was, and then turned around (showing your back shows no fear) and went back to what I was doing. It took her awhile to finally do what I said. First, she cussed me out, then she came over and stood next to me and cussed me out. I ignored it. When it came time to go outside, I told her she had to stay back with me until she put the chair back. She put the chair back. Had I shouted at her, or engaged with her as she tried to push my buttons, I would have had to deal with her throwing chairs every day after that.

I don't know if this helps you or not, but it just seems to me that the only thing that will work in this situation is to take away her power over you. I don't know if she is your supervisor, but even if she is, she does not have the right to be so disrespectful to you all the time. In fact, it's very unprofessional. Also, is it possible you're not giving your other co-workers enough credit? How do you know they believe her lies? Perhaps you are not the only one she treats this way.

I hope I've helped. Regardless, good luck and feel free to PM me if you'd like.

WW