Hasn't Jim explained? It was a misunderstanding, I am sure he meant no offence.
(If he had said she was ugly, then that would have offended me!)
Vicky
Yes, that's taking a personal interpretation to what may/may not cause offense, but let's look at cultures where women are the property of their husbands or fathers (and where, for example, if the woman get raped, SHE gets punished, as she is now rendered worthless in terms of human value). In such instances, making such a forward remark could offend the husband or father, not to mention the woman herself, who has to protect her virtue, as her life depends on it. It is therefore much better to avoid paying compliments to all women, just in case... right? Or have I misunderstood the conclusion reached on this board earlier today?
The other aspect to this was that a person may take offence (due to jealousy) if their partner pays a compliment about appearance to someone else.