Yes the blog title says it all. Get stricter. If you see anything which breaks the rules or could be seen as offensive to another user/group of people then warn them. Do they still do it? Kick them. Ban them. Do whatever you have to do to make people realise how serious it is. This isn't unfair at all, you have all been given plenty of choices, chances and times where you could change. I'm sorry its had to come to this. Mods, it is your job, which you accepted, to do this. Ignore who your friends are. Ignore what everyone else who isn't a mod is saying. If it broke rules or if it could be deemed offensive to somebody, warn.
Once somebody seems to have had a lot of chat warnings/kicks/reports off other users then I want you to leave a strongly worded message on that user's page telling them that next time you or some other mod sees them acting in a way which breaks rules, is rude, offensive, etc. then they will be banned for X amount of time. If you are unsure of what amount of time would be appropriate then come to myself, Wes or Annie. But us three will give harsh time limits as we want to crack down on this.
What can be deemed as offensive? If you think that something which somebody says could be found as being offensive to a certain group of people, a country or even a user on chat then it is offensive. No matter how small. No matter if that group is very small and are the only ones to find that offensive... It is offensive and an insult and is kickable. If it carries on it is bannable. There are three or four of you which I am hinting at when I say this, people who have been on borrowed time. Once the screenshots come in from Cass and Lauren, this new scheme will be put in place.