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Some people may totally disagree with me, this is just an idea, but maybe she kissed that guy to make you jealous if you haven't been giving her enough attention. I find it hard to believe she would allow herself to be kissed like that when she seemed to care about you fairly recently, and she knew you were in proximity.
Regadless, I'd move on. I had the exact same situation happen once at a bar, and it completely turned me off.
Please don't feed this guy false hope. As you said, regardless of her behavior its uncalled for. Best find someone else worth your time, energy, and luv'n.