Long Story Short - She's totally gone from the company.
Long Story Long...
The company I'm with is very small, and the boss is always there, so we had the meeting first thing this morning. I was in first with the big boss man, and nice CW#2 came in as well to say what had been said to her.
Turns out that she's overheard this woman talking to me before, and attested to the fact that I never disclosed any personal information about myself to Evil!CW, but that she was fairly unrelentless until distracted by something else. He asked CW#2 why she hadn't said anything beforehand, and she said that until yesterday I had never stood up for myself and told Evil!CW to stop, so she'd assumed that it wasn't bothering me. He then asked me why I hadn't told anyone beforehand if I'd been bothered, and I explained that I hadn't wanted to make a fuss, as it was my first fulltime job since university, and didn't know what to do - and that I was worried that it would be my word as a temp, against hers as a fulltime employer.
Then Evil!CW came in and just basically started accusing me of having a vendetta against her and hating her. The boss couldn't get a word in edgeways - it was like a cross between The Apprentice and Jeremy Kyle. Eventually they managed to get out of her that yes, she was talking about my private life, but that it had been a joke, I had always been fine about it and she thought I'd found it funny... she went on and on with the excuses and basically ended up implying that it was me that started the conversations and that she just went along with it. CW#2 reminded the boss that she had heard conversations and that I had not participated. The boss went over the company policy and told Evil!CW that she was on some kind of warning.. I forget the name for what it was, and I didn't really understand the details - like I've said before I don't understand all this office stuff! He asked me if I was happy with the outcome, promised me that he would move me to another department and he would contact my agency himself, to explain what had happened, and he would forward the 'minutes??' to the agency, and let them know how the situation had been dealt with.
Anyway, Evil!CW starts shouting 'I didn't realise that you valued your employers so little, I can't believe that this is a problem etc etc, it was just a joke, I've done nothing wrong. How can you do this to me yadda yadda yadda, I'd rather leave than have to work with people who treat me so unfairly and so on and so forth for quite some time.
Boss said 'If that's how you feel, fine, I expect your resignation on my desk by the end of the day.'
We went back to our desks while the boss sorted something else out to do with it - went over my head. Evil!CW stomped to her desk, started hammering at the keyboard. Printed something out and gave it to me, asking me to 'pass this on to your new best friend. Maybe you can start shagging him when you find out that I was right all along, that your fiances lying cheating scumbag and your marriage fails. No wonder he's off with other women when you're so fat.' And she stomps out of the office, never to be seen again.
I look at the paper she's given me, it says in big letters 'Dear 'Boss', £$%^ OFF. Signed (her signature) Evil!CW.'
All I could do was laugh at this point - she's clearly unstable. I'm so glad it all got sorted out, and I actually couldn't care what she said when she left - nothing she said had any weight behind it. The lovely CW#2 asked me if I wanted to go back and report what she said to me, but I figured that whats done is done, she's gone anyway.
If you're wondering, I didn't pass on her letter to the boss, but my CW#2 did. Apparently he sighed and passed it to his PA to file.
So... problem solved!
Thank you to everyone here who was so nice while this was happening - I'm so glad I said something to her that day, and that there was someone there who was able to push me to take it further.
Now I suppose I need to talk to our mutual friend - no doubt Evil!CW already had... Any advice on that one!?
(Edited to correct spelling!)