Anyone know how sexual harassment works outside the workplace? I know someone who's going to court for "sexually harassing" an underage girl over AIM. This guy was listed as mentally retarded in his school.

Are there even any applicable sexual harassment laws for general day to day life?

Yep, there are! (http://www.lawguru.com/cgi/bbs/message.php?i=370743386&view=a)

I think outside of the workplace this comes under Tort law. (http://en.wikipedia.org/wiki/Tort)

A mentally sound person could well be charged with sexual harassment in this situation, but his handicap should work for him here.