Yeah, I'll admit I probably let it go too far, but in the past with any good male friends I've had, sex has always been an open and easy topic of conversation, and something I'm not shy about. There have been quite a few instances where a conversation has left a friend aroused, and I've always held the opinion that it's not healthy to let those things slide, but I guess the flirtation that accompanied this time made it a lot worse.
After speaking with him today he seems to have backed off quite a bit, and I think he's probably regretting what he did. I'm sure things will level out now, and hopefully I can stop it from happening again in the future.