// Your array
$friends = array(
	array ('fname' => 'Dana', 'lname' => 'Severance', 'email' => 'dana.severance@gmail.com'),
	array ('fname' => 'Chris', 'lname' => '', 'email' => 'laskey@gmail.com'),
	array ('fname' => 'Cory', 'lname' => 'Honkala', 'email' => ''),
);

// Your foreach

    foreach  ($friends as $friends) {

		echo "Here should be the name: " .  $friends[$i]['fname'] . "<br /> Number: " . $i . "<br /><br />";
		$i++;
	}

// Same loop, different variable names for clarity and to illustrate a point
foreach ($friends as $key => $value) { // could also be foreach ($friends as $value) {

  // for each loop through the array, two variable are initialized, one, $key, holds the key, and $value holds the value of that spot in the array
  // So, the [$i] part of your code points to a non-existant array
  echo "Here should be the name: " . $value['fname'] . "<br />Number: ". $i ."<br /><br />";

  // $value => Array ('fname' => 'Dana', 'lname' => 'Severance', 'email' => 'dana.severance@gmail.com'),
  //  On iteration two, $value => Array ('fname' => 'Chris', 'lname' => '', 'email' => 'laskey@gmail.com'),
  // On iteration three, $value => Array ('fname' => 'Cory', 'lname' => 'Honkala', 'email' => '')

}