I think you and your friend need to get some things staight pretty quick: i.e. - Both of your intentions. If you are both going to be competing for the same girl, There's a pretty good chance that the friendship is going to suffer, if not completely dissolve. Like Alexi said, if he's going to start competing w/ you knowing that you are into this girl, you might want to take a real hard look at just how valuable this friendship is to you. . .
"Love is Fire. But wether its going to Warm your heart or Burn down your House you never can tell..."