That's what she said.
After much thought, I decided to throw in the towel, and offered to handover my position to someone more capable. End of career for me? Lucky no - My decision has actually forced my boss to rethink the way she has done things, and she is putting my decision (to step down) on hold, and to work things out herself.
Moral of the story, like what all you guys said - evidence, records, and most important - DIGNITY and INTEGRITY.
Thank you fellas.
Whoa, this must have been a really tough decision, at least on your part!