Soon after, Michelle engaged in a feud with Beth Phoenix, which initiated when "The Glamazon" became the number one contender for the Women's Championship after winning the Interpromotional Divas Battle Royal at SummerSlam. At the Unforgiven pay-per-view, however, Michelle successfully retained her title in their first match by countering one of Phoenix's moves with a crucifix pin. Unfortunately for Michelle, Phoenix had her number at the subsequent No Mercy pay-per-view as she dropped her title to her, ending her three-month reign as Women's Champion.

The beginning of the end occurred fifteen days later on October 22, 2007 when Michelle legitimately cracked her clavicle during her rematch for the Women's Championship against Phoenix in a two out of three falls match; Phoenix ran into the ropes, causing Michelle to fall face-first off of the turnbuckle onto her face, neck, and shoulders necessitating a rushed finish and putting her out of action until February. The official in the match came under heavy scrutiny for moving her after she had fallen as it appeared she could have broken her neck.

Michelle made her on-screen return on the February 18, 2008 edition of Monday Night Raw, distracting Beth Phoenix during a match with Maria. She returned to in-ring action on March 17, teaming with Maria to defeat Jillian Hall and Victoria. As bad luck would have it, she injured her left shoulder during the match by tearing the scar tissue over her previously broken left clavicle. Unlike her previous injury, Michelle broke her clavicle in four separate places, in essence, shattering it. As a result, Michelle was replaced by Ashley Massaro for her scheduled match against Beth Phoenix and Melina at WrestleMania XXIV.

Michelle would return to action five months later, but was very rusty, so much so that she botched four moves within the span of thirty seconds in her return match. Fortunately for her, the September 1, 2008 edition of Monday Night Raw happened to be a taped broadcast, resulting in the match being heavily edited. Despite her less than stellar outing, Michelle's push continued as she was named the number one contender for the Women's Championship. Unfortunately, she came up short in gaining the title as she lost to Beth Phoenix in their match next month at No Mercy.

Shortly thereafter, WWE began phasing Michelle out as a top star, culminating with the former Women's Champion going over two-and-half months without competing in a single singles or tag match on television. To add insult to injury, she was eliminated within mere seconds during a battle royal she took part in during a December edition of Raw.