How old are you? You don't sound very young, And she certainly isn't, with two kids in college.
The reason I ask is, because you don't need to play the games of youth, and should know to be honest with your friend, and tell him of your interest to date this woman. That's first.
She seems to be interested also, but going in this with wild eyed anticipation, is for those that know, no better.
Dating is to learn about a person, and see what happens. So be honest upfront, as she has been, but don't go giving your heart away this soon. Then there is nothing to look forward to, and the chances are you will crash, and burn, because you rushed so fast into a brick wall, as your friend obviously did.
The old bull, told the young bull, "to slow down, and date them all" when they came to a pasture of cows. I cleaned it up a bit, but in light of what she has told you,
She's not wanting a serious relationship at this point.
Better go at this slowly, and honestly, with
eyes wide open.
Tell your heart to keep quiet, so you can hear your brain talking.