The war of words between the controversial and recently dispatched Miss California, Carrie Prejean, and the organization is becoming a game of legal chicken.

No one's showing signs of blinking, either.

The latest drama? The 22-year-old says she is gonna give the Miss California USA officials one last chance to clear her name - or she's gonna sue them.

In a letter Prejean's attorney just fired off to the lawyer representing the Miss California pageant honcho Keith Lewis, the attorney says Lewis defamed Carrie by making the embattled beauty queen seem uncooperative and difficult to deal with.

The letter also accused Lewis of using Carrie to push a gay agenda. He did not address Donald Trump's observation that Carrie treated people like $h!t.

The best part? Carrie's Prejean's lawyer says Keith Lewis had no right to release the 22-year-old's "confidential medical information" - i.e. her boob job.

The letter claims that Carrie has suffered "severe emotional distress" as a result of her treatment by the pageant association and its officials.

If Lewis doesn't recant his comments, Carrie's lawyer promises he will file suit.

The pageant's lawyers have threatened to sue back if she doesn't back off.