Rude to be polite?

I'm a polite person by nature, and that carried over into the way I speak Japanese. However, is there a point where it is rude to use polite verb endings and last names?

For example, a friend of mine told me it was okay to use their first name, but my friend is a little older than me, so I still speak politely. Is this wrong?
-Nicky

When invited to use someone's first name, it is not rude to do so. You way wish to use his last name when he is around his equals and superiors, just to be safe.

I don't think it will ever be rude to be polite, but for example, if you say, "Hey, we're buddies, right? Call me Nicky." and the other party replies, "No sir, I can only call you Mr. Smith." wouldn't you feel a bit lonely? What is "politeness" after all? Is it the language? Or is it the attitude?

I agree with the above two posts. I think that if you have been invited to be more friendly with a senior or senpai than you should. However, in a work situation, you should be polite towards that same person until you're having your own conversation again.