Whatever you do, do not act on those feelings that are creeping up. You need to continue building on the friendship and waiting it out. She too must have those feelings if you don't want to be burned again.
You WILL be able to deal with the past baggage when the time is right. Both of you will have to commit to making it work and in doing so, you can deal with the baggage and yes, it will have to be discussed not just left in the past.
Just do not set any expectations. Take it slow. You're doing great.
Me: 49 - S22 & S26 H: 41 - No kids M: 10/00 Bomb New Year's Day 2006 H living w OW 01/07; have baby 12/07 D final 07/07 Thread #9 - Hope Lives On