Re: What does she want?
If you feel uncomfortable with sex, just tell her that you ain't ready. If she truly loves you, she will value your opinion, and things should turn out all right. As for your friend, you only will be divided if you let yourself. You can still be friends and stuff, just explain your situation, and that your not stealing his girl. If you can put it plainly, he will understand. Just a side note if you will, to your first statement.