If that photo is representative of the area in question, then I'd reconsider using this extremely tight space for "outdoor living". And unless I am missing something, that slope is not very severe. Even if leveled, I doubt this area would be congenial to lounging outdoors or utilizing as a patio, etc. Too exposed and too restrictive and without sufficient space to develop any kind of green privacy screening. I'd consider just a mixed shrub buffer between you and the neighboring property, perhaps with a meandering pathway connecting it to more usable areas of your property. Unless that photo doesn't reveal the true slope of the area, I'd say no terracing or retaining walls are necessary or even practical. Can you post photos of other areas of your garden that may be more conducive to outdoor living/entertaining? I still think this is a situation where engaging a professional for an hour or two can be helpful - it is difficult even from the photo to get a good visual and a true sense of exactly what you are dealing with.

Appreciate everyone's input and suggestions. Very kind of you all to offer guidance. Really liked the idea of using existing structures with a playset- amazing picture DD! Also appreciate the lighting suggestion. Never even considered adding lighting. Assuming I could dig down 9-12" and regrade the area by reducing the high side by 12" and building up the low areas. This is something I am now considering. Just need to figure out how to frame out the area for the mulch. I have a tree expert coming tomorrow to assess the area and get a quote on plantings and grading. Our township denied my application for a fence permit since one side of the proposed fence falls within an easement area. They did approve planting of trees to stabilize the bank but now denied the fence. So I will just add some type of plantings and regrade without adding a fence. Will look to add a fence later when I have the energy to argue with the township. I am starting to think Michelle's suggestion for purchasing a playset that can accommodate a slope would be the easiest solution. Only playset company I found that could be altered for slopes was Rainbow sets-I still have to level out area for the clubhouse but that is only a 5x5 patch. We still want to fix the sloped side of the yard to make a more useful play area. Will let everyone know what the landscape contractor / tree expert proposes.

Thanks, toxcrusadr. I thought about digging down and burying, but my concern about burying the wood is that it would just cause it to rot faster. I should have added that I did suggest "cut and fill" as an option anyway, even if there was no actual barrier with the native soil on the "cut" end, since it would even out the levels...and lead isn't exactly mobile in the soil, right? I also suggested the option of minding what she plants on each end of the bed, and she was also amenable to that. She had soil tests done last year, but realizes now that she wasn't as careful as she might have been about doing it in zones, so the info she has about different parts of the yard isn't quite as granular as she now wishes. I can certainly guess the source of the lead. This is the city (not heavy-duty city, she's in a residential area with single-family homes, but city nonetheless), and I think she said her neighborhood was built about 70 years ago. Her neighborhood is quiet enough that I wouldn't guess that exhaust from leaded gas is too much of the source. Probably it's all about tightly packed old houses (and garages, and sheds) and peeling lead paint. It's a common problem around here. She got enough granularity in last year's soil test that she knows that the bed immediately next to the house is particularly bad, so she's abandoning that for all but ornamentals. She's got other areas designated as "OK for fruiting things, not for roots crops," etc. She's hoping to be able to grow anything she wants, though. She's got a toddler in the house, so she's trying to be extra-careful about leaded soil. In addition to the other values of the raised beds, they will also provide a barrier between the yard and a drop-off -- the edge of their yard ends in a tall retaining wall, and the neighbor's yard is much lower than theirs. I think the beds will be an excellent choice all around, considering.

Do you have gophers in your area? If so it is very important to put hardware cloth (wire) under your beds.NOT chicken wire! Too flimsy! What we have done is dig in or fork in (we have a 2 week window spring and fall when it's not clay muck or like concrete), add composted horse manure (from freecycle) water that in, place your frame + hardware cloth, add some soil (we bought ours from several places, but ended up the least expensive and organic was from the dump), watered that in some more, then filled the box and plant. Each spring I add some of my own compost and till in with my little mini tiller. Every few years I do need to get a truck load to top things off. You said you were planting up against your house? If you don't have access from both sides of the bed, you probably don't want to go 4' deep (that is if you want to not walk in your beds) Have fun and happy gardening! Nancy