Relationships - Am I ready?

So I have been single now for almost seven months, however I was still sleeping with my previous boyfriend.  We ended the "sleep" overs about three weeks ago and are trying our best to be friends.  That is all well and good and I really hope that I can be friends with him as he was a great guy and we get along well.  Who knows maybe we will become best friends down the road.  We do know each other quite well.  I am sure that will be a first.

So I am left wondering about someone new.  I met someone on Saturday night and we ended up spending the whole night and following day together and we really groove.  We have a lot in common and talked about all different types of topics and it was great.  Him and I didn't talk about us dating just being friends, but it is convenient as he lives in the same area as me.  What I am trying to decide is, how should I proceed?  I know I will be seeing him on Friday as we have both been invited to a surprise birthday party, but we have no plans just to meet up alone.  There are some conflicting messages going on in my head right now...lol.  One being am I ready as I just ended something with a long term boyfriend.  Another, I really like this guy but either way I would really like to be his friend.  So how do you have the conversation of dating without jeopardizing the friendship?  Then if he is interested, am I ready?  I feel in a lot of ways that I am, but I also feel that I have lots of personal exploration to do.  I haven't had a lot of time being on my own and part of me wants to enjoy that.  So I eagerly await your responses on how you think I should move forward.

Oh and a side note, he is a work associate of an ex I dated off and on for five years.  Have to tread lightly there.  I did ask him and he said he was cool with us.

Well I am eagerly awaiting what everyone thinks.