I would go talk to the homeowners association or management and talk to them. I would tell them everything you told us.
First off, if her dog is lunging at you or your dog, it's a danger to have in the complex. What happens when it bites a little kid??
Secondly, she needs to understand what is HER yard and what is the common area. You can tell her all you want, but it's probably going to be much more effective if it comes from Management.
As long as you are picking up your poop, then she really doesn't have any ground to stand on anyways...but you do if her dog is aggressive. If she was just being a b**** then I'd say simply ignore her, but the fact that her dog could easily hurt your dog because of her negligence is concerning.
If mgmnt doesn't do anything and her dog lunges at you, I'd report her to animal control and I would tell her I was doing it. Heaven forbid, if her dog attacked yours, you could always sue her for the vet bills and/or your loss, but there's no amount of money that's going to replace Zoey.
If it were me, I probably wouldn't even have my little guy out if she had her dog out. I'd wait or walk somewhere else...and if she started walking up, I'd scoop my little guy up and away from harm so no accidents happened.