Thank you, everyone! I ended up working from home all week since my boss had been on business trip and I could just manage his schedule and take care of other things remotely. It has been so refreshing, and I feel so much better now! In our small office, there are just three of us, which makes the situation even harder. I'm not getting paid much, so I've started looking for a new job anyway.

I worked as a nurse in addiction treatment, and once we started to get all the young opiate addicts it became very stressful, on top of the stress of poor staffing. Stress is definitely a killer and a good plan in dealing with this person is your best bet, if you like your job otherwise and don't want to leave. I always felt that I liked my job so well, that no one could affect me to the point of walking away. Focus on your positives, on what your doing well and feel good about it. Feel sorry for her, as she obviously feels inadequate enough to think she has to suck up to her boss. Make a game out of it, she might get some sadistic pleasure out of making you feel stressed or angry, so purposely change your response. One thing is true, you can't change others behaviors but you can change your own and in doing so they also have to respond differently. Don't give her the power to upset you! Own your own power.!
Good luck and have a confidante to share and release your frustations with.

Try looking on www.themighty.com they have lists of places that are looking for people to work from home.

Exactly like that to me as hopeful74 says..as dealing with stress is a strategy and I think it needs a perspective change with a consultant support in this condition. I started that and took the weight of my shoulders a bit. A good way I thought to break that cycle is also having a relaxing massage to untighten the muscle that improves sleep, that improves next day, that reduces stress from lack of sleep. So I guess having frequent massages for us is a must not a luxury. I think God thinks we deserve pampering:)

i've found my muscles tighten when i get stressed and it all just snowballs. i also have a hard time sleeping with racing thoughts keeping me up. i try to keep my life drama and stress free but it's life.