Does she just want to be friends or something more now?

She's taking it slow and sorting out her feelings. Which is the best approach instead of rushing head on and ruining your chances. She's taking time to actually get to know you which means she cares about your feelings and the subtle flirting means she does like you. Take the time to get to know each other and maybe eventually she'll leave the other guy for good. However, only wait as long as your willing to wait. If things dont work out, move on.