Until (or even unless) Dawn or Kathy force the issue, it seems pretty easy to just ignore her. If you don't have to work shoulder to shoulder with her or report in to her, then just do your job and leave her alone. It doesn't matter what she does or doesn't get away with; that's not your business. You focus on what you do and do it to the best of your ability. Remember that when you've gotten the benefit of a good recommendation out of this job (which is really one of the big reasons you have it), she'll still be stuck doing the same thing. You're going to surpass the high point of her life exponetially, so putting up with petty bullshit now is no big deal.
She most likely treats everyone in your position like this. She's a bad employee, but that's not your problem. Don't get sucked into the drama of trying to "fix" her. If I were the boss in this situation, I'd give Jan a little talking to, fire you and just confirm your employment (i.e. no recommendation at all which amounts to a negative) when your future employer called.
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"They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." - B. Franklin
"There ought to be limits to freedom." - George W. Bush
"We have met the enemy and he is us." - Pogo
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