Let it drop, sounds like the problem has been escalated way out of proportion already, the two boy's should have been left to handle it them selves.
Phil
Letting the kids handle it themselves is not a good answer. The bullied boy might be charged with some sort of legal action, if he is perceived to have escalated the situation. It is a matter for the school to handle now (since the police can not charge the bully). The boy's parents need to closely monitor the situation and make sure their son is not physically harmed or threatened into submission.
Bullies are a real problem and tough to deal with.
