Interview Notes, or it's a small world!

I recently interviewed with a retailer.  When the District manager took my resume and application from me he flipped through it and sort of grunted when he saw something on the application.  Instantly my heart stopped.  But he continued on with the interview, in fact I actually had a good time and learned a lot about the company and the concerns it’s facing.  I'm sitting there thinking that I got this nailed down pretty good.  I've got all the good answers to the standard questions and all is well.  Then comes the hard one, "tell me why you were termed from your last job?"  I first give him the short answer, and he asks me for the long one.  Based on something I said he asked a personal question about my boss.  I'm sweating bullets and not wanting to sound like the typical disgruntled employee or throw rocks at anyone, but I am wondering if I slipped.  After a couple more questions we establish that the interviewer knows the guy who fired me! 

Okay, now I am freaking out (inside of course)  I'm thinking this guy is best buds with the . . . person who termed me so I think as soon as I am through then he will call the old boss, hear all the lies and I am toast with this company.

He tells me "Let me tell you a story about (Former boss)" and goes into this long drawn out description of how they had been pretty close at another employer 3,000 miles away.  He worked for my old boss; he sometimes gave the old boss rides to work when he had car problems, etc.  I'm thinking that next will be that they are godfathers to each other’s kids! 

Long story short the old boss stuck it to the interviewer in much the same weaselly manner as he did to me and he finishes the story with an implied "and I HATE that S.O.B.!"  I smiled with relief and said "It sure is a small world!"