I think gossip is one of the worst of the sins. It's so destructive. The bible is very clear that when we have something against a brother, we are to go to him in private to talk things out, and if that doesn't work then we can bring in an elder or leader, but again in a private way. I've seen the careers of good people be ruined and marriages break apart because of gossip. People can work out issues much better when it doesn't become front page news.
I live in a really, really small town where everybody hears everything, so I really am strict with my kids about gossiping. If it's not kind, then it needs to be something absolutely necessary and told only to the proper people. I'm even with my daughter about gossiping about celebrities. She watched some of the Jon and Kate Plus 8 show, more commercials than the actual show and now that their marriage is breaking up and they are on the gossip rags at the checkout, I've had to tell my daughter that gossip is gossip even if you don't know the person.
One more soapbox about gossip is that I hate how often in church circles, gossip is dressed up as a "prayer request" for someone. Honestly, if someone needs you to pray for them over an issue, they'll ask you. I don't think it's best to get "prayer requests" from third parties about other people.