Lastly - Log the conflict--both sides of the story--and resolution into a document. Print out a copy for each party to the employee conflict and have them sign a master copy to verify the information is correct. File the document with human resources for future reference if the conflict ever arises again. This can ensure that mediating employee conflict does not need to repeat itself.
Remember the worst thing you can do is avoid the conflict, hoping it will go away. This, too, shall pass, is not an option - EVER. Learning effective conflict resolution is your best option.