I recommend your 4th option,

That's if your sure of getting another Job as good as your present that's if your present is good.
@ralvy: nothing is guaranteed, i definitely can get another job, how soon i don't know. i love my current job but i this guy is making me hate it.
@guys:thanks for your advice on this. i just got a new nokia phone that record calls, i tried it and it works well but there's a little issue, it gives this sound that mite let the other party know the call is being recorded, i want to get my life and peace back asap, do u think he'll notice this when am recording his conversation? any advice from a nokia phone guru wil be helpful.
once this done, i can take it up with my boss as evidence.