A weird parent across the street...

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My son is six years old. He often asks to go to new friends' houses, but I won't allow him to go unless I meet their parents and actually go to their homes to see if I think he'll be safe. This isn't unreasonable, is it? I don't think so. Anyway, my son came home one day last year and asked to go to a boy's house who lived across the street. I told him that he couldn't go because I didn't know his mom. So my son proceeds to tell me the kid's mother's name, etc. and I told him that I still didn't know her. He became upset and asked me why I wasn't so mean. I told him that I wasn't being mean, but some people do bad things that kids shouldn't be around, like drugs, etc. I wasn't saying that this boy's mom did drugs, but evidently he misunderstood and told the boy that I said his mom did drugs. Imagine my surprise when the woman came over here accusing me of calling her a drug addict!! What an idiot! I don't even know her, so why would I say such a thing. It gets really uncomfortable being ignored and given dirty looks everytime our paths cross when we pick our kids up from school. I tried explaining, but she still thinks I said it. What should I do? Nothing, probably, huh?