Should I progress things further or end it?

Perhaps you should review what exactly the relationship's "potential" is, and where it lies.

I agree with Lesae... however if there's no chemistry naturally, it's quite hard to force it... perhaps it's just not meant to be.

If you really like her then try the kiss. It just sounds like you two have no chemistry. If your conversations seem boring write down some interesting topics before you talk to her, if she is boring then she is just boring. Can you date a boring girl? Being shy and being boring are quite different.

Have you guys already gone on a nice date or anything yet?
if it's boring, you should definitely spark things up by surprising her with some flowers to let her know that you care. And if it's bothering you, you should talk to her about it. Of if you know any of her friends, they most likely know her better and you can probably confide in them about what to do!