As much as I would personally enjoy watching people fight and bitch in an area of the board dedicated to that specific purpose, overall, I feel that it would detract from the quality of the forum. I agree with the cbma06 that there should be no second or third chances. If the rules have been broken and people have been offended then the posts in question should be removed and the poster warned about their conduct. If the said poster is going to do something similar a second or third time then it's likely they're going to do it a fourth, fifth and sixth time too. It saves time just to get rid of them on their second offense.

However, I do think the decision to warn and/or ban someone should be open to debate. On other forums I have witnessed arbitrary banning by moderators for a number of silly reasons. I have also witnessed people reporting posts in an attempt to get someone they don't like reprimanded or banned. If you feel that strongly to complain about someones conduct, then you should be prepared to argue why you feel disciplinary action is in order.