Thanks Squinny.
Yesterday I had to have another talk with another employee - this one was associated around work performance or in his case lack of work performance.
So I am now the designated b*tch in the office, but at least in this case I think I put the fear of God in him (or the fear he wouldn't get a bonus). Amazing how some one who did crap (if any) for work suddenly becomes responsible and takes ownership for his work when told if he continues in this fashion it will be reflected in your bonus.
Even though I still have a couple of more minor performance issues to deal with (one centering around the aforementioned eruption), I told my boss I am done with these conversations right now - I will have to deal with the others later. I am beyond my quota for confrontations.