Michael, I think it's wonderful that you want to "parent" your friends baby. I'm sure you guys will be fabulous role models and a great second family. My husband and I applied to adopt yesterday - we filed our official application. Have you guys thought about going that route, or do you have a friend that would "bear" children for your and your DH? Heck, if I could get pregnant again I'd do it in a heartbeat, if I didn't want more children myself :-)
Good luck. Hope your dreams come true.