http://www.nytimes.com/2010/10/10/fashion/10Cultural.html?_r=2&ref=general&src=me&pagewanted=all
I don’t know if I will homeschool or not, but this kind of behavior in schools is just one of the reasons I am seriously considering it. When and how does learning take place amidst all of this???
I worry a lot about it too, especially since my daughter is a very sensitive little person. Unfortunately, I don’t have the option of homeschooling, however much I would like to. 
One book that I have read and re-read is Hold on to Your Kids: Why Parents Need to Matter More than Peers http://www.amazon.com/Hold-Your-Kids-Parents-Matter/dp/037550821X It is one of the best parenting book I’ve ever read and one section deals with “bullies and victims.” Basically, he says that children who have formed a strong attachment to their parents and who are oriented to their parents more than to their peers are less vulnerable to bullying and can protect themselves better from bullies. The books actually covers much more than the topic of dealing with bullies - I highly recommend it!
I recommend HOTYK too, here is an article I found by one of the authors that summarizes the book (thesis.)
ETA: The book does offer strategies on how to strengthen the parent / child bond where the article does not.
I actually just returned this book to my library last night (HOTYK). I didn’t get a chance to read it and I am going out of town, I will borrow it again when I get back and hopefully find the time.
Here is another thread on emotional literacy where we discuss “Non Violent Communication” by Marshall Rosenberg. The book gave 2 examples where NVC was used to by women to talk down men who were threatening physical violence. I have also heard it recommended by parents to help kids talk down bullies.