I think this is something you and your other co-worker should take up with the offending party. I believe in first taking a problem to the person causing the problem and trying to resolve it on that level. Often this is the best method and it doesn't take it to a supervisory level where feelings could be hurt or worse yet, there could be outright animosity between workers. No one wants to work in an office where there is a feeling of animosity. If this method doesn't work, then I think you have to take it to the supervisory level. A small office generates many problems with privacy, but if you approach that problem with friendliness and concern, I think you can resolve it.

If it is you on the telephone while she is making the comments, address it after your done with your conversation. Tell her that you think it's rude and you don't appreciate the commentary/editorial. If she continues, let her know that you plan on talking to your boss and/or HR department. Be sure to document the times that she does this so you have some sort of record. Good luck.

Immediately after it happens, you say, "Excuse me, Jane? Could you please not talk about my call while I'm on the phone? Thanks."

I think you have two choices. You can pull her aside and talk to her or be direct as in Joyce's advice. If she's visible, use sign language of sorts or put the caller on hold and let your co-worker know that you're having difficulty understanding the caller with her comments and that the caller is distracted as well because she/he can hear everything being said.

Thank you for your help and support. Very much appreciated. Margie

If it is a business call - point out to the woman your customers/vendors would appreciate not being talked about while conducting their bustiness. If it is a personal call point out to her that your company allows you to spend your time making personal phone calls and it is none of her business. If your company does not allow personal calls then the problem is yours - get off the phone and get to work.