Another option, which is very risky, but has worked for me in the past is to subscribe to what I call the "Klingon theory" of socialization. I used to work in a manly-man shop, working on big machinery with a bunch of union guys (lifers). This one guy in particular used to rag on me constantly, and me being new, I just sheepishly played along, trying to play nice and friendly. This only seemed to make him more and more aggressive. One day, I decided to give him a taste of his own medicine. So when he finally mouths off to me, I jokingly retort, in my best nonchalant, ball-busting tone. Using much of the same old, tired sh!t he'd throw at everyone else.
He LOVED me after that, since it proved I was "manly" enough to hold my own against him, plus he got some sick kick out of it. And I never failed to hold back the tirades, although they were carefully framed in jest. It's not always easy to pull off, especially if you really don't like the guy (that can show through), so it's not for everyone.
That, or maybe the best option is to just stop trying to be nice and chatty with the guy. Interact with him as little as possible, don't avoid him...but just don't engage him.
mrC