How do I get over my shyness?

met this girl about 3 years ago. I instantly thought she was very attractive physically and also that she had a great personality. However, at that time she was engaged to be married.

I didn't really talk to her for about 2 years and around the beginning of this year I started talking to her. Her marriage had not worked out and she was dating a new guy at that time.

We got along so well and I felt attracted to her instantly but she was not available. She is now single and it was a really hard breakup, in addition to her marriage failing.

I didn't want to catch her on the rebound. So I kept talking to her, mainly online through Facebook. This actually went well. I was even at the point where I was going to ask her number.

I had an unexpected opportunity to hang out with her tonight and I froze up and I just couldn't seem to strike up a decent conversation. I just felt 'paralyzed". I bought her some drinks. We even sang two karaoke songs together and had fun. But I remained frozen.

How should I have gotten the conversation going. I gave her a hug at the end of the night and told her honestly that I was really nervous and that I was not real comfortable with the bar scene.

I really like this girl and I hope I didn't do any permanent damage. I'm just kicking myself for not taking the opportunity.

I would really like to hear a woman's perspective on this. Also have any guys been in this situation. How did you handle it? Please I need help. I'm going to be at a party with her again this Friday and I don't wan't to screw up again.

Sidenote - I haven't dated much recently and am very gunshy. The women I have been with always made it real easy. This girl intimidates me for some reason but it only just happened tonight. Not even the alcohol was able to 'loosen' me up. Help please!!!