I think you need to forget this guy. He's got too much baggage. You may like him but look at all this trouble it's caused, it's not really worth it. You need to be honest with your friend and tell her how you feel.
Not all guys are the same. I used to think they were though. You just have to put up with it until the right guy comes along, because he will. But think of all the millions of guys there are, it's not going to be easy to find the one that you get on really well with so just be patient and he will come to you
