Pardon me sir but I think thats my a** your touching

So why is it that flirting with someone makes them think they have the right to do anything they want? I mean really!

Recently I had a party and invited several friends to attend. Among those friends is a very nice guy from out of my area. I have chatted with the person for a number of years and have felt a deep affection for him. So when he came to this party I was very excited that he would make the trip for me. Now I've noticed on the other two occassions that I've actually been around this man that he is very "handsy", and I noticed he is that way with every woman he meets. I didn't think too much about it. I thought he'd be very respectful, as he always has been in our chats. But he pushed things a bit too far and now I have to figure out how to tell him without hurting his feelings. I don't mind the hugs, and such, but he gets a little to snuggly and forgets he should ask before proceeding.

So I guess I'm looking for suggestions. Whats a polite way to tell him to back off without hurting his feelings?