Matt, I have a lot of the same issues as you by the sound of it. It's hard isn't it when you tell someone something and you explain the situation to them and they still don't get it. You feel awful because you don't want to hurt them but you can't make yourself feel something that isn't there. In the long run you're better being up front about things now and letting her get on with her life and find someone else.

With me i always run away from these kind of situations, I've always taken the cowards way out until recently where I send an email saying sorry I'm not interested and then I tend to hide away until it all blows over and it ends up with me losing a friend.

Whatever happens you should not feel guilty about how you feel, you've done the right thing in telling her you don't like her as anything more than a friend. Whether she can just be friends is down to her, don't push her, just give her time to realise the situation and see what she wants to do.

If you want to chat to someone please PM me.