Should I have the right to be upset? Overreacting?

no you arent overreacting. end the freindship, unless you have a serious conversation with her about this, and she decides that she cares more about your freindship. On the other hand, she might be a real freind if she truly believes you are going to hell. You should talk to her, and if this is the case, then a religious discussion would be appropriate, as long as she can go through it non-accusatorially, with an open-mind, and without trying to force her beliefs on you.