Panda Girl, I'm sorry to be the one to tell you: You have to forget about guy one. He clearly told you that he doesn't love you and will never date you. I don't think he even wants to be your friend. I would try not to interact with guy 1, it'll be good for the both of you. As for guy 2, I'd tentavely start dating him. Not exclusively, don't make any commitments. In fact, don't call it dating. Just explore it as a friendship. Tell him you want to get to know him more as a friend and see where it goes. You should've feel like you need to rush into any relationship if you don't want to. Taking things nice and slow is always the best. Good luck.