What about the "upside"?
Has anyone considered the up-side to this? Now you can confidently go into that next interview with your resume packed full of made-up stuff, and it will be easily validated when the employer does a google to check. All you need do is simply create lots of MySpace etc. etc. web pages by people who don't exist, fill them with rubbish about how brilliant you are and all the great things you've done, and you have instant validation. So while someone with a grudge can make you look bad, you can also make yourself look very good. Google is not a source of "trusted" information!
If an employer is serious about checking references etc, they should just try picking up the phone and calling the companies you claim to have worked for!