Phobe or not?

I have this workmate, who tends to call anything unpleasant (or anyone stupid) "gay" or "fag". If we don't get some materials on time, it's "Why are those fags just sitting on their asses?"... and if a machine isn't working properly, it's "This fucking gay gadget always fails!"

When I confront her on this, she just shrugs it off as "a habit" of speech and says she doesn't mean anything by it. One day, as some materials fell on the floor, I exclaimed, "Why don't these goddamn straight things just stay where they're supposed to?" - this was right after she'd commented something about some "gay" materials. She laughed, then told about my comment to some other workmates.. and still completely missed the point.

One day I got pretty mad at her and said I didn't want to work with a "fucking hetero" like her.. but that only shut her up for a few days.

I had such a nice week when she was on sick leave. Last night she was back.. and I seem to be stuck with working with her.