Basically where a man ends up when a girl finds out that she can make him his "boy friend" without having sex or other equally gratifying contact with him. It's an especially bad place for the guy, because it means that he's in for relentless crying and bitching and suffering when she's in-between boyfriends. In other words, you're the first person she goes to when she needs a cry and a bitch, but the last person she'd actually date or have sex with. If she asks you how to get a man, knowing you like her, then just shoot yourself right then, or move on.
Brody: So, what did she say?
Kyle: She said that "You're too good a friend for me to date you..." then later asked "Why can't I get a guy?"
Brody: Dude, you're in the friend zone. Look up urbandictionary.com and askmen.com so that this emotional castration doesn't happen to you again! XD