The Moderator needs to be a person that nobody knows who it is, that way no hard feelings or threats can be thrown his/her way.
I mod another site and have also done a Busa site and it makes it easier as you can't go to a member and complain or hold a grudge against them as you don't know who it is..
My .002 from the voice of experience, that person cannot play to any favorites..treat them all the same however give the members that add to the site a bit more leeway (long time members) than a new member that came on just to sell parts and spam the board.
J