There is a great white paper posted on TechRepublic dealing with the topic of managers and effective management of team conflict. This skill should be a core competency for all managers. Discussion includes recognizing team conflict symptoms, determining how to address team conflict, and improving a manager's ability to build teams that can deal effectively with both healthy and unhealthy conflict.
Rob Cullin and I will also be addressing some of this in Talking without Jargon to be presented at the PLA 2008 National Conference in Minneapolis, March 25-29, 2008.
For the complete article, see Effectively Managing Team Conflict