[that's what i have a hard time with... she's reaching out, and i have to talk to her... but should i??? i didn't call her tho - so that's one good thing]
If she calls or initiatest the talking, then you should reciprocate. You don't want to alienate her if she is reaching out. On the other hand you should not go out of your way to initiate contact for no good reason.
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So I said, W, I love you, but I don't want to be a pansie here. I'm not going to be a pansy... I say I love you and I forgive you and I don't want you to feel guilty about something that you did and can't take back... you just can't take it back, so you have to move on.
This sounded like the most rationale part of the conversation and I think it is something they need to hear. They need to be able to let go of the guilt in order to move on.
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and one thing lead to another and we did some crazy, passionate LM. It was truely so intense... almost like everything was out there in the open. She openly admitted a few times that she had feelings.
Good for you. Little jealous here.
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I know she really likes/loves this other guy... and it's probably really frustrating for her... I acknowledged that to her the night before. But they see each other everyday... and that scares me. They aren't in direct contact, but he's in their office, and they are all friends... i asked if they talk, and she said no... but she said sometimes she feels things when he'll say, have a nice night, or happy halloween... or just little comments. So I'm sure she's frickin' going crazy.
That they are in the same office and see each other regularly would definitely be a concern. I wonder if she is telling the truth when she says they don't talk. Could it be that this guy really isn't interested in her anymore after having gotten what he wanted? Sounds possible that he's moved on and she's stuck with the feelings.
Overall, it sounds like things turned out on a positive note from your post. Definitely keep suggesting the Retro weekend and work on getting to a good counselor.