I just found a fascinating article over at this site on the subject of flirting. Lot's of very high quality content; well worth a read.
Quote:
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Research has also shown that men have a tendency to mistake friendly behaviour for sexual flirting. This is not because they are stupid or deluded, but because they tend to see the world in more sexual terms than women.
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Sounds about right to me
SIRC Guide to flirting