He then said that Tylor (his 8 yr-old) told him that the boy across the street "rubbed his pee pee through his pants" (from the ouside) and wondered why he did that. Jerry did not realize the extent to which THAT was SA. I warned him that he has a child-predator accross the street and that he's a real and present danger to Tylor...and that NO kid should EVER be alone with that boy...that this was likley step-one. That Tylor could end up in that kids house and...
Wow. My eye flew right over this paragraph earlier today.
The good news here is that Tylor went to his father with his discomfort about what had happened. That's really important, and hopefully this episode can be handled in a way that the boy doesn't feel that his openness with his Dad has blown up in his face.
I would agree with Nobs about the pretty innocent possibilities here. Kids this age are becoming curious about their bodies and will often share that curiosity with other kids. I read somewhere that up to a third of all boys get into this sort of experimentation at some time or another before or during puberty. They may play doctor ("check up, check down") or whatever, without any harm being done to any of the participants.
If the other boy is significantly older, however, or if things went further than just playful touching, then there may be a problem. But even then, Tylor's Dad needs to be really careful how he handles this, otherwise the boy could emerge feeling ashamed or guilty and may hesitate to come to his Dad in the future.
There are a number of good books for kids this age about "good touch, bad touch", and the message is basically that a boy's body belong to him and not others, and that it's not a good thing if he is touched in the area covered by his swimming trunks or underpants. These books also stress that "touching secrets" should not be kept.
I posted a list of these a few weeks ago, but I can find them again if you're interested. The problem is that some are outdated and even, in my opinion, irresponsible. But the good ones really are excellent.