Ohmygosh I am so sorry to hear you're going through this, as I did too -- almost exactly like you're describing.
I also experienced the violent banging and beating on our ceiling/his floor, etc. And we were definitely generating normal family noise -- the neighbour's very lovely partner always assured me he understood we had small children, and not to worry about any noise at all.
Like you, we felt oppressed in our own home, and spent many moments wondering if the neighbour was going to go out or, if he was already out, wondering when he'd be back. Meanwhile, DH and I had to shush our two-year-old twin DDs almost constantly... It was awful.
This went on for months and I kept thinking we would work it out between us all... until the day the psycho neighbour became so enraged he jumped on his floor/our ceiling so hard that our ceiling lights fell out, then he went outside and broke the window of the children's room. Then I knew we had to move.
I did talk to the police about it at that point, and was advised that if I lived in council housing, it'd have been easy enough for the housing association to mediate. However, because we owned our flat at the time, and the neighbour owned his, there was no one who could really step in. I was advised to keep a noise diary of every time the neighbour banged at us, then I'd be able to officially report him to the police for harassment or some such -- sorry to be so vague, I don't remember the specifics of it now, mostly because we had already decided we had to get out of there quickly, and certainly weren't going to stick around to keep a noise diary of any sort.
Good grief, I have derailed your thread with my woes.
Long story short -- keep a noise diary of your neighbour's aggressions. It might come in handy when you have to prove she's been harassing you, whether you eventually report to housing authority or local police. In the meantime, good luck and lots of
.