I'll step in and post my response. I didn't post my response straight away as I wanted to read a lot of what has been happening during my absence, as well as dealing with a large number of PMs from both sides of the fence.
The short answer is that there are no official moderator guidelines. In the beginning we didn't need them. The forum was small and the only moderating issues were welcoming new members and dealing with spam. Recent events have shown that there is more to consider and I will be addressing this.
To answer a few questions which have arisen over recent times (not all have been specifically raised in this thread).
Are moderators members?
Yes, everyone who has joined this site is a member.
Are moderators always moderators, or can they "put on the cap" when needed?
Moderators are always moderators and should act as such whilst they are moderators. There has been some confusion about this, and again, I will be addressing this.
Are there secret forums? What goes on there?
There is a private moderators' forum. Nearly all forums will have one.
We discuss forum related issues, ranging from creating new forums to dealing with difficult issues (warnings/bans) etc. There is also a private testing forum to deal with the more technical side such as splitting/merging threads etc.
Should moderators set a standard in their posts? Should they endeavour never to break the forum posting rules?
Nobody is perfect, and people will slip from time-to-time. All members should try not to break the forum rules.
Are moderators seek-and-destroy enforcers, or are they gardeners who feed the garden and occassionally prune the trees?
A little of both. If they see something which is potentially going to turn nasty they can step in to deal with it.
What is the difference between a Senior Moderator and a Moderator?
Moderators only have moderating powers in the forum(s) they are assigned to.
Senior Moderators have moderating powers in all forums, as do I.
How are warnings and bans discussed/issued? How can people appeal?
Minor issues will be dealt with via PM from a moderator. These are not warnings, but a bit of "friendly advice".
All official warnings (part of the three-strikes system) are discussed and issued if the majority of mods/senior mods are in agreement.
Bans are discussed in a similar manner, but I have overall veto regarding bans.
If people want to appeal against a warning they should contact me, and only me. If people want to appeal against a ban, either in person or on behalf of someone else, they should again contact me.
I can either be contacted via PM or via email.
I hope that helps to clear up at least a few of the issues which have recently arisen.
Darren.
Welcome
to BookAndReader! 
