THANK YOU ALL....
for your responses, given me much to think about. As regards her comments to my husband, it comes in the form of 'innuendo' I am sure she will say its just a bit of fun, He doesn't find it funny and we are not straight-laced by any means! He kept quiet because he knows she is my only friend, and I understand that.
I had not thought of dementia, she is quite a bit younger than me and pretty sharp at other things, general knowledge, crosswords etc... but will bear it in mind.
Jealousy did briefly cross my mind, I am no oil painting but she has not been blessed with good looks, but they are financially way, way, better off than us, big house, constantly going away on really expensive holidays, cruises etc... whereas we are happy to stay local and we don't like flying anyway! I don't think there is much for her to be jealous of.
Fortunately she lives a fair distance away so visits are naturally infrequent, my husband can't stand her, and I think I continued the friendship as she has been such a good friend in the past (I suppose I feel a bit guilty because of that, disloyal in a way) I hate confrontation but I think I can't let her upset me like this. We both feel so sorry for her husband, such a nice man.