Wow that hit close to home for me.. I've been posting about dating... I would have to say move on. Whatever the reason is she told you how he feel so I would believe it and my get wrapped up in how great you thought it was going. (I need the same advice myself now lol)
At least she was direct with you in some manner instead of just ignoring you. It sounds like you think she's just not ready for a relationship and that could very well be the case. The hanging out as friends usually doesn't work the way you think it will.
You sound like a very sincere person and someone will be lucky to have your attention.