Personally, I would report it, but whether or not you personally feel it is worth it is another thing. Re: your boss' religious beliefs...they can only be used to determine what HE believes is offensive and innappropriate to HIM, not to ANYONE ELSE. And certainly not regarding what is appropriate in the work place. Unless of course, you have recently changed work places and are employed in a church.
Isms are innappropriate and unnacceptable no matter how they are expressed. We may not be able to change some people's attitudes about these things, but neither do we have to sanction it by ignoring it.
