I know a woman who hugs without asking all the time.

[Major Nikon]

8. It would be quite difficult to establish a legal case for that

The first legal hurdle for a sexual harrassment complaint to be successful is establishing prima facie. If you can't establish prima facie, your case gets dropped and you are SOL. In order to establish prima facie, you have to show the following elements:

1.He or she suffered intentional, unwanted discrimination because of his or her sex.
2.The harassment was severe or pervasive.
3.The harassment negatively affected the terms, conditions or privileges of his or her work environment.
4.The harassment would detrimentally affect a reasonable person of the same sex.
5.Management knew about the harassment, or should have known, and did nothing to stop it

http://en.wikipedia.org/wiki/Hostile_environment_sexual_harassment

If the person is hugging members of both genders, #1 can't be met. If there was no adverse impact to the employee, #3 can't be met. Now if they were having to go home due to stress, or seek medical attention, or something along those lines, this can be met, but it's hard to imagine someone doing that over a non-sexual hug. #4 is the reasonable person standard. It's not enough for the person to be detrimentally affected. A judge or civil court would have to decide that a reasonable person would be simularly affected.

The training you got was designed to convince you that the legal bar for sexual harrassment is low. It's not. It's actually quite high. However, a smart employer is going to take action well before the legal bar is met out of self interest if for no other reason. Sexual harrassment complaints are costly to defend, even if the employer prevails.