Tips for breaking in a new office-mate.?

A woman has just been moved into the cubicle next to me, and we have low walls, so we can see each other and talk over the wall easily. We are working together on a project, so the idea of the low walls is to be able to discuss anything we need to quickly and easily anytime. The person who just moved out took that as liscence to chat constantly about her kids, her kids' school, thier daycare, their babysitter, their schoolboard, what the family had for dinner last night, how she would go about discussing the birds and the bees with her pre-teenage daughter, and so on all day long. I have to admit that I encouraged this discussion by participating because I was interested in these topics, and brought up my own stories, but it was impossible to accomplish anything. I am looking for tips to maintain a friendly, but more productive atmosphere in my new, across-the-low-cube wall relationship. P.S. Chatty Kathy is now in the cube in the next row, talking the ear off of someone else, and I am ignoring it just fine.