Vanessa George, 39, from Plymouth, Devon was arrested at her home in the Efford area on Monday night. She is charged with SEVEN offences, including sexual assault and distributing indecent images of children.
About 40 police officers are working on the case including internet crime investigators. Children's care specialists are also involved in the operation, police said.
Police said about 100 people attended a meeting on Tuesday evening held by police and local council child care staff for parents who's children attended LITTLE TED'S Nursery. Police are continuing to speak to staff and parents of children at the Little Ted's nursery unit in Laira where Vanessa George worked.
A 38 year old man has been charged in connection with the investigation. The man, from Littleborough near Rochdale, appeared at Trafford Magistrate's court on Tuesday charged with possessing and distributing indecent images.