I just signed up for this site, and this is my first post. I'm in training at a part 141 flight school, and this is one of the incidents we evaluated when talking about situational awareness (much credit to the USAir flight who refused take off clearance until the situation was resolved).
I was told that the female tower controller was fired. I don't know the accuracy of that, but if she wasn't canned, she definitely should have been.
This is the same ATC recording in MP3 format. It's ripped directly from the Real Media NTSB animation.