We spoke again with Lipoa last night, and although she doesn't have a computer in her home, we told her of all the support that has been shown in this forum. She was very flattered. Of course, she also has a thick skin having worked in WDW for so long, so she knows she can't please everyone all of the time.
In any case, she has been encouraged by many of her family and friends to pursue legal action, and it looks like she finally will do so.
She did tell me that the photo was presented as the only grounds for her termination. No other complaints. And the photo was taken at such an awkward angle from the floor that her face was not even visible - Dave Venerables (Poly GM) had to have her verify that it was indeed her, and she did. The final decision came from California, not the Polynesian. She is still very stunned, but is doing some volunteer entertainment work at Orlando hospitals and still making children feel good.
She wanted me to thank everyone who has e-mailed on her behalf once again, and she says she will miss everyone and wishes everyone happy holidays.
Aloha