Is this 80 year old man coming on to my friend?

Ok, this old man definitely show interest in your friend, too much, I think, for an old man. He probably doesn't mean any harm, maybe he just got a little carried away by such a pretty young lady in his house. But I suggest if he takes all that 'rubbing' and 'kissing' any further, she should just calmly move away and not feel pressured or insecure.