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One of the options the LW listed was going to the woman directly. Both Cary, and most of the posters seem to dismiss this. I agree the examples given are highly inappropriate; OTOH, given that she is talking about fantasies and experiences she had as a teenager (not with her boyfriend last week) I'd at least start with the idea that she thinks she's connecting, and give her an opportunity to see the light. I also like the idea of the group brainstorming on teaching techniques. Of course if those are dismissed, then further measures need to be taken.
If the course is Our Whole Lives (also used by the United Church of Christ) you can't teach it until you've gone through a three day training program, and I imagine that addresses the kind of sharing teachers should do (I don't know, because I haven't been able to schedule the training yet:-) and the teacher could also be reminded of that.