definitely needed.
It should be in a couple versions: "Report RMT Spam" and "Report Harassment" from the chat window, where the chat entry itself becomes part of the automated report.
Possibly also a Report option when right-clicking a character. This one could only automatically fill in the who, where, and when info, so you'd still need to enter a description of what actions you're reporting, but it would still be a better start on a report than we have now.

(Of the two, I think the chat window one is the more urgently needed.)