What if I have a friend that used to like a friend, but now likes me?

See, I have this guy friend, and he used to like one of my girl friends. He was stuck on her pretty hard. They went out, and were getting along fine, but then, suddenly, she broke his heart. She told us that it was because they were too close of friends, but he said that it was because this other guy-a sopre or junior- in the band asked her out. Her parents said no, but that didn't change the fact that she wanted to. So, Monday, we were on the band bus, coming home from a contest, and he sat near me. Then, he kept asking me for a hug(which I have been giving out pretty generously since church camp, in his defense), and he said bye like 4 times. Then, yesterday we were coming home from a football game and I was sitting by him, and he kept flirting with me. (I did sit by him, but that's because I was trying to listen to what they were saying, and I have hearing problems.) He was tickling me, and laying his head on my lap, and asking me if I was ok and saying sorry when I complained. I flirted back (accidentally) and now I think he likes me too!!!!! I don't know what to do! I like him as a person, and he goes to my church, but I don't like him like that. Well, I would go out with him if he asked and I was allowed, but that is confusing too because I like someone else and I think(or hope) he likes me back. So, if I went out with someone else while I supposedly 'wasn't allowed' it would crush him. I guess I just want some opointers. OK. Thanx in advannce.! I wull update this soon! Thinks agin!