1. I've indicated clearly that I expect to pay for the new fence (and the removal of the old fence).
2. As far as "clearly" on her side/my side, I guess I overstated -- by the plat, the fence is about 6 inches on her side for half of the length, then switches to being 6 inces on my side (think "pivot" in the center).
3. I have no idea who put the fence in - my neighbor has lived in the house next door for over 10 years and she says it was there when she moved in.
4. Their is a small (6-8 inch) retaining wall along the same line -- in fact, the chain link posts are cemented into the wall. I talked with my fence installer and he said he could remove the fence without disturbing the wall (the wall protects her property from my property's drainage). The new fence would be installed on the other side of (my side of) the retaining wall.
5. I've described to her the fence that I expect to put up (matching the rest of the fence that surrounds my property) Its about 3.5 feet high, custom wood fence with lattice work (matching an original 80yr old fence). It would be painted white, which may be an issue for her (maintenance). I've tried to explain that I'd be responsible... Her current claim to not wanting it down is that she likes the ivy that grows on it. (which I hate because I fight it getting into my yard...)
I really DONT want to get into an ugly situation with her. Fundamentally, I like her and like to maintain good relations with all my neighbors. Two fences are not an option here, so, unless I can figure something out, I'm gonna stay with the ugly chain link.