Jamie, I agree with you that become friends with someone before deciding whether to date them is a good idea. This is based solely on my own experience of falling in love with an older guy when I was 16. He wouldn't have sex with me until I turned 18, so in those two years we got to know each other really well and were fairly sure adding romance to the relationship would work out.
Steph, the first guy I had sex with was a friend of mine. After a while the sex thing just didn't work out, but we were never able to go back to being friends.
So I guess like anything when it comes to love there are risks no matter what you do. That shouldn't be a reason to not take a chance. Life is hardly worth living if you don't constantly challenge yourself, take risks, get hurt, learn and grow.