Damn bro. Woman like to play these stupid games. I can pretty much tell you, that what she said translates out to, I am not attracted to you at all and will never date you, but your a life long friend and I dont want to hurt your feelings.
This is what you gotta do. Find some random girl, make sure she is really cute, and start dating her, but dont care about her at all. Still hangout with your lover, and if she asks if anything is new tell her about the new girl your seeing (just dont make it sound like your trying to make her jealous, But you have to now make HER feel like she just got put into the FRIEND catergory and doesnt have a chance to date you) THIS WILL MAKE HER DROP TO HER KNEES FOR YOU. Girls like to chase after someone, you have to be a little bit of an ***, and make them feel like they cant have you unless they work for it. Dont expect her to ever come around to wanting to date you if you just continue crushing on her and hangingout with her and being nice to her.
Or, just move on, there are plenty of fish in the sea my man