Hahaha @ retroxxkitty's story, it sounds like it all turned out all right for your friend, and she was happy with the end result. Her hair looks really good in the pics! Especially her monroe style one!
To the op Sam, Stay away from the hair dye!! Seriously you willl only add to the damage, and it will not be good!
I know it probably doesn't look great right now, but unless you really want to shave it off, you need to leave it as it is.
You could always go for a short cute pixie cut....I'd try that before shaving it. You can totally get away with a short-do, seeing as it's really common on girls right now. Something like Posh's shortest hairstyle, or what Pink had, had.
Also I would stop washing it, and only do it when really necessary (like twice a week) just wear alot of hairbands, ponytails, braids.....anything to hide it.
You can get a really good conditioner from the store to use when you do wash it, and you could try Joico K-Pak Reconstruct, it's a really great hair repair cream. Kind of expensive, but totally worth it.
Also you could try Coconut oil. I use it on my own hair, you can get it from any grocery store in the ethnic section. It comes solidified and it's white, not an oil at room temp. Just put a bit in the microwave for 20 seconds and put it in your hair. Wrap your hair up for awhile, then rinse it out really well, shampoo and condition, and your hair should be very soft. I do this once to twice a month, because I'm trying to repair my hair as well.
I went from almost platimun blonde to a dark brown (which streaked green!!) then an auburn brown on top of that twice in 2 days, and know I've had to leave it as it is. That was November 1.... My hair has gotten much better because of it, it still has splitends l ike crazy that I can't get rid of, and breaks once in awhile, but it's nothing compared to what it was. It's taken me 3 months to get here
Besides that, only time will heal it.