You're certainly not being paranoid, these are all legitimate concerns. It sounds as though you're handling the sittuation with the utmost professionalism. On the other side of matters if
Donovan seems to think that she's jealous of me because I'm a lot younger than she is and I'm so comfortable in the job try to ignore the pettiness and just "kill her with kindness", it's old fashioned but it seems to work. Eventually she'll tire of exerting so much energy into such a petty endevor or she'll come to appreciate your work ethic.

:-P