I would report it. What that person did was seriously out of line and kind of crazy. There's a danger that if you don't report it, she will report it and claim that you were the one who came onto her. I would not confront the coworker and I would avoid being alone with her.

It would be one thing if this was a single person your age (still extremely inappropriate). A married coworker 30 years older doing something like that is quite disturbing. Does she have direct contact with clients? Doesn't this indicate a danger that she might act inappropriately with them? I would definitely report this.