Please see the email (below) we sent to the Toronto Police to which they replied, please contact your local police. FYI, we are working on an island in the South Pacific and the police here are not able to assist with this matter. Can someone advise us about how to proceed and stop this harassment?

EMAIL SET TO TORONTO POLICE:
Regrettably, I am not sure whom to contact, but am hoping you may assist us. There is a woman named PERSONAL INFO EDITED OUT who states in her emails that she resides in Toronto. She has bombarded my email and my husband's email with over 60 emails containing accusations including cyber-stalking and hacking into her cell phones, computers and TV - is that even possible? My husband has replied only with a Defamation of Character Cease & Desist request which he copied to the several email addresses she copied in on her accusations. In her various emails, she has written from several different email addresses and has provided at least two different telephone numbers including PHONE NUMBER EDITED & EDITED. Of course, we have NOT made any attempt to contact her by phone. It is obvious that she has pulled our email contact information and our work histories from our professional web page to try and lend credence to her accusations, but I can assure you that my husband couldn't hack into anything. He can't even program the VCR, for heaven's sake!
I can send you samples of her emails, if that will help and since she seems desperate for some resolution, perhaps you could contact her and she can provide whatever evidence she thinks she has so we can all have some peace.

You'll just have to block her incoming emails. The Toronto Police can't stop her while you are not there in Toronto but off somewhere else. In the meantime, ignore her.

Why don't you just lock her out of your emails? This type of harassment is a danger when "you" have a website. It happens all the time and I am not aware that the Police anywhere will become involved unless there are threats.

A person is only defamed if someone believes what is said and it appears you do not believe her.

I agree with Judy, again, you aren't defamed if she is writing to just you. Someone else needs to also read the e-mail and then caused you harm or financial lose such as lost business or clients. If I told people the store next door sells spoiled food and the owner has aids, neither are true, I will have very likely defamed him and he will have less customers. If I said he was a stupid jerk and sold crappy food, its an opinion and I would likely skate.

As everyone else has said, "defamation" means you have to be harmed by the statements and that those statements have to be untrue. You haven't been harmed by this woman being crazy. You may be able to do something about the harassment side of it, but there's no case for defamation.

And no, as far as I'm aware, you can't "hack" a TV. Even if you could, I truly don't see what you would benefit from it.

I thought I stated that she was copying others on the emails she is sending us. The addressees are people within our Industry. To me it is an obvious attempt to defame and discredit and since the accusations a false should be punishable through some means. We have had to block her from all of our email accounts, Facebook, MySpace and Classmates. Now, we have no idea to whom she is sending false accusations, but at least we will have a break. Of course, I fully expect her to create new email accounts and pick up right where she left off.
She seems quite obsessed.

I agree that she is obsessed. Contact people who have received the untruthful emails (or other contacts). Get Affidavits that they believe what she says. Get statements concerning how much business you've lost - it's about monetary damages.

Then go to where she is and sue her.

This is not "punishable" unless it involves threats. She can be sued as I have explained above.

Thanks. That seems like sound advice.