Wife's former employer destroying career!!!!!!!

My wife is a Nurse. She had a good work enviroment untill she got sick. when she returned from short term disability her supervisor was very condesending towards her. When summoned to a meeting one morning she was told that she should be more respectful towards her suporvisor (the supervisor requests this respect by yelling a pointing her finger). after several minuter of this mis-treatment my wife told the lady if she dident know what she was talking about she should shut the hell up. She was told to leave the building and of course fired. But the problem is that when my wife goes for a new job her old job shoots down all her applications. she has to use this job for a referance she was there for 6 years, but if she uses them they send all types of mis information. On a recient interview the recruiter told her that she sent a simple form to the previous job and they faxed her back a 7 page letter stating my wife was a trouble employee and she was constantly abusive to superiors and should not be hired for any reason. they also told my wife when she was fired that they would prevent her from recieving any unemployment benifits and that they would try to take her nursing licence away. This seems illegal to me, i thought your employer could only give the reasons you were fired legally.

so my questons are.
1. was my wife legally fired.
2. can they threaten my wife's lisence.
3. can they send specific information to my wifes job prospects about her termination of can they only state the reason she was terminated.
4. if they are wrong on any count how can my wife legally recieve compensation.

sorry this is so long but i felt i needed to fully explain. thanks in advance for all responses.

Being fired for insubordination or failing to get along with superiors or co-workers are valid reasons for termination. However, giving references that amount to what you have said opens the employer up to potential liability. What your wife needs to do is take advantage of a free consultation with someone who specializes in the practice of Employment Law in your area. She may have legal options, including injunctive relief and potential for monetary damages.