How do I play with my friend in Guild Wars 2?
Solution 1:
This sounds like you were not on the same instance of the map, once in the same party, goto the same map. Then click on your friend in the party and click Join in instance (name of map). Should be called something like that.
I think that you have to finish the tutorial before you'll both be out in the main world, this should take 10-15 minutes.
A map instance is a way that allows a lot of players to be on the same map without it over loading. Each instance allows (iirc 125 - 150 people??) But before that cap a new instance is created (automatically) and people are placed in it.
You'll find when joining large groups for world events etc.. that they're greyed out on the list of party members, right click on one of them and join in there instance, if the map is full it'll say so.
This is the only way to "switch" instances, making your own or trying to get to a specific one isn't allowed.
Another reason could be:
Did you both join the same region? i.e NA, EU, China (iirc)
If one of you is on EU, they'll have to transfer to NA to be able to play together (should be free) NA only accounts can NOT transfer to EU.