According to this morning's Observer the "Palace" told Downing Street to beware Yates and his investigative methods after he turned the Palace household "inside out". What this article actually says is that a former diplomat who knows Jonathan Powell and now works in the Royal Household spoke to Downing Street. The Palace and Downing Street are not denying the conversation took place though, and are simply saying that they cannot comment on the communications between the two seats of the Establishment.
What I think is more interesting is that "friends of the PM" are quoted as saying that the way Ruth Turner was arrested was outrageous because the Police "treated her like a common criminal." There is a subtle truth inside that last comment which is exactly the reason we have such cynicism of politics. The view that Turner was treated like a "common criminal" essentially elevates her to a position that says she should, because of her job, be treated differently before the law.
I have but one word. Bollocks. If you are suspected of breaking the law, the Police will arrest you. How they choose to do that is entirely up to them, and the idea that some criminals deserve worse or better treatment than others (usually because of the type of crime) is nonsense. Just because you're not running a crack factory from you home doesn't mean that you shouldn't be visited by the Police at 6am and arrested on suspicion of committing an offence.
We are equal before the law, when politicians and their advisers start thinking that they should be treated differently somehow it sends out a clear message to people that actually, we're not equal before the law at all. The "friend" of Tony Blair personifies the contempt for society which the power elite actually have.