She said that he was being inappropriate and made her a bit uncomfortable. She said that she is just trying to be low key about it and hopes that it will die out from him. I offered my services to `have a word`... I promised not to be mean or to go in swinging, but I would be firm and make sure he understands.
I'd back you up on this one, no aggro, just a quiet word. However chances are this "friend" won't end his inappropriate behaviour unless W tells him "No" in a very firm manner, I'm not sure if she understands this. Hopefully this saga will end when W goes on maternity, if not sooner.
Overall things look to be going in you favour, I'm not gonna tell you not to push things cos you got the best handle on your sitch, but everyday your posts and you in yourself sound more and more positive.