Hi blu-eyes!
I googled and just NOW found this posting because I am dealing with a similar problem and trying to clear my name. This person sends me emails, denies they are from him and creates fake accounts to harass me, but luckily hasn't created sites yet (that I've found) disparaging me.
I do know this and hopefully it will help you in your problem - if it isn't too late! If he has created a harassing/slanderous sites, more than likely it should fall under the hosting provider/domain name providers anti-harassment/anti-defamation policy. Additionally, if he is using a Yahoo, Hotmail, Gmail or other free email service, you can report them via an abuse page the site should have.
If you have the web address, do a "Whois" search on the domain name in question (domain name is in the format: domainname.com or domainname.net or domainname.org etc, without trailing characters. This will get the host/domain providers contact information.
http://ws.arin.net/whois
Enter the domain name in question in that form at the top of the page and click "submit". This will bring you back the companies hosting the site and where the domain name was registered. You can contact them directly and they should suspend their account immediately for free.
Hope this helps you and anyone else and hang in there

I know how it feels...