In need of Job Advice

[USFSDTAlum]

I am posting this in Chit chat b/c more people will see it, and I am in serious advice need.

A month ago I got fired. Let me explain the situation so you'll have a better grasp. I worked for a small new mortgage company. My manager is/was nuts. I had several situations with her where I would say something to her and she would either twist what I said, or turn some meaningless conversation into some big deal and go to the President/ VP of the company. I had no prior experience in the industry and they loved her from her first day on the job. When she wasn't immediately having some wacked out moment, we were actually "friends". I know now to use that term loosely. But this is probably the reason I repeatedly would lower my guard. Incidents one and two, have past, and this is what happened to get myself fired. I was sharing an office with "Sarah". The President of the company had come into our office said some harsh things to Sarah, and she was crying and very upset. When our manager returned from lunch she had come into our office, when I said President was mean to Sarah. Later that afternoon I was pulled into a meeting in the presidents office with him and Manager. He tells me at this point that he was told by Manager that I had said he was rude and offensive. (Nope, did not say that.) and that I was causing drama in his office and was immature, and was being terminated.
I was shocked, since just that day at noon was being told I was being promoted Jan. 1. At the termination meeting, they both (manager and President) did tell me that my work was wonderful, but because of this incident with my disrespect for president I was no longer employed.

This really upset me, as I work very hard and have never been FIRED before. I am still dealing with the emotional aspects of it.

Now, I have learned my lesson about this, in the office place unfortunately, Don't get involved/ open your mouth. and Watch your back (this does sound unecessarily pessimistic but there is other circumstances that I don't write as it doesn't pertain to current question). I should never have said anything, and stayed out of the situation but president made Sarah very upset, and being her friend I thought I was helping. I have learned I wasn't.

I have been interviewing and have to admit I've been fired, and I believe this has kept me from actually landing positions that I feel I would have, had I not been fired previously . My question is 1. Do I have to admit I was fired? From an HR standpoint can my old job tell prospective new employers or can they only confirm employment. Secondly, it being such a stupid situation that got me fired....what do I say/ how do I explain this in interview. I need any help anyone can give, need job ASAP and am very frustrated with trying to interview/ look for new work, and this big black X on my past, which I don't feel is necessarily indicitive of my work skills/abilities.

Thanks for any help, I apologize for the length.