" I tried to make it up to her, and she seemed to be relaxing into the evening, but then told the story, I suspect to be passive-aggressive. I had no choice, but to set limits with her."
I think boundaries would work better in a situation like this. Her behavior is not for you to dictate. She's not a child.
In a boundary, you state what you need and what you will do:
"That story makes me uncomfortable and embarrassed. If you tell it again, I will walk out of the room."
M:63 H:53 S:41, SS:28, SS:25, SD:23 M:15 T:16
Bomb:12/17/11, "I think we should go our separate ways." H moves to his mother's house, 4/1/12 12/21/12: H moves back home, piecing