Caroline and Damon?

I don't remember much from the novel, but as for the show which seems to be vastly different from the book thank God, I think Caroline is out of her mind. Damon has her all turned around. Remember in the begining when she said either Damon kissed her neck or bit her, and that she thought maybe she let him bite her BUT wasn't sure. Obviously she is in a fog because I don't see Caroline keeping her trap shut if she knew he was a vampire. I think that truth is locked up in her head, like when she asked if he was going to kill her and he said yes. Obviously she was out of it because she didn't flinch.

in a way....caroline does know that damon is a vampire. however damon has used compulsion on her so i am sure that the only way caroline has been able to refrain from telling the truth is that damon had made her forget the details.