tiggerblue10, I really feel for you, I have had exactly the same experience, I loved my job, I had worked there for years and I worked very hard. A new boss came in and to say he bullied me is an understatement, he made my life a living hell, I was a strong character until all this, but ended up having a nervous break down - he knew how to play the system and got away with things time and time again. I went through all the correct channels, raising a disciplinary etc and eventually had to hand my notice in because he was making me so ill and depressed!! I took him to court, the problem is with employment law, there is no legal aid provided for it, he denied everything and could afford the best lawyers, where as I had not got two pennies to rub together - I took the case as far as I could by myself, but I was struggling to go further without a lawyer, even though on several occassion the Judge seemed to be on my side!!
He continued to harrass many members of Staff after me and they have subsequently left. He is still sitting pretty and earning a fortune content with his life!
I hate to say this tiggerblue10, but certain people in the work place do have an ability to play the systems, whether it be they have something on the company I don't know!
My only advice though is if it is making your life unbearable and affecting your health, try and find something else - I know that would allow him to win - but from my work history the ******** do inevitabley seem to grind you down!!
Good luck though,xxx