How to Lose A Guy, Nicely Options

[towntown2]

I am rather embarrassed posting this, but I do need the help.

A few months back, I got a Myspace message from a guy complimenting me on my photography. We began to talk back and forth, and our conversation soon moved to AIM. We have things in common, and there was soon an air of flirtation that laced our posts. It's been almost five months, and by now, our IMs have moved to phone conversations.

He's very kind and smart. Our conversations flow from a range of topics, and it's always fun and flirtatious. He suggested we meet sometime during the summer [he lives about an hour and a half away], but I have always pushed the date back out of nervousness. I think this should have been a warning sign. My guts have always told me not to push this thing with him too far.

So lately he's been very romantic-al. Telling me how he misses me over the weekend, how he thinks of seeing me and looking into my eyes. But while he seems to be more and more interested, I start to feel myself pulling back. I don't want to be in this arrangement with him anymore [I hesitate to call it a relationship].

On top of that, I'm beginning to develop feelings for a someone in my own town. I feel more comfortable with this guy than the online dude. What I want is to pull away without hurting him too much. I feel that he'd be much happier with someone close to him rather than me. Also, I have relationship and trust issues that I need to fix before jumping into anything serious.

How do I break it off diplomatically and ensure that he will respect my request to cease all online and phone conversations?

[towntown2]

I'm really dreading having to tell him over the phone.
When I'm in a confrontation, I deviate so much from my prepared dialogue that I start saying stuff that I don't mean.