As a former community leader on a well known ISP I'll just stick my 2p/cents worth in on the subject. Moderators are stuck between a rock and a hard place when it comes down to managing message boards and chatrooms. They should run an unbiased area following the guidelines of the owner but alas personal interpritation does come into play. Moderators should try not to allow their personal opinions to dictate their role within a community. Remember your role not your screen name
I feel for admin on this - You can please some of the people some of the time but never all of the people all of the time. If there is evidence of any wrong doing then my suggestion is report it to admin and let them deal with it.