What you have just said sounds so familiar to me I thought for a moment you were my X :P We have discussed this mutual feeling, not being sure whether we should give up on being friends and go our separate ways, or try to remain in contact and have a friendship. I'm not sure that either are possible, because we work together every day, until I can find a new job, so we can't go our separate ways, really. There will have to be some level of contact. Also, things were so complicated and emotionally charged that we're not sure if we CAN be friends at this point, or any point in the future. It's a really uncomfortable and sad situation.

All I can say is, don't take your friends' advice unless you know that is what you are ready to do. You may need some time away from her to decide what you want to do, and I'm sure she would understand that you need space for a while. But don't entirely discount the possibility of being friends just yet. Give it time.

Good luck, I hope both of us figure this out!