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You can declare any room or space in your house as an "office" for crissake. Just slap a desk and and computer in there and maybe a phone and fax if you need them, and get busy. I don't know of any residential zoning law anywhere that prohibits someone from working from home, people have been doing it since before Amway and Mary Kay and Avon and fucking Fuller Brushes.
I used to do bikini & lingerie and softcore shoots in my home years ago, no law against that either that I'm aware of. I have never heard of any law against using a camera or taking video in one's own home.
And the best part is you get to claim a % of your utilities and all your "office expenditures" on your income tax as a write-off.
I say again, your neighbor is an idiot. A nosey misinformed overbearing idiot. Do like others have said... contact your city hall, maybe get them to print you off a copy of the actual laws governing home-based businesses in your community, and go drop it in her mailbox. (or walk up and thumbtack it to her forehead)
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