Her life is falling apart and she wants you to pick up the pieces.
I think if you are comfortable with supervising her visits with the kids and are confident in your ability to DB with her, then you could. I love that she doesn't want to inconvenience anyone but you. hehe. If you do that, you are the supervisor. Don't give into her when you are there. Stay firm in what you are doing.
On the other hand - She got herself into this mess. There were other options, but she chose this route, now she needs to deal with it. She needs to pick up the slack and then maybe she'll have more options.
I wouldn't read a whole lot to what you hear that she says to other people. She obviously needs your help. I know you want her back, but do you want it to be because she didn't want to have to get a job and wants you to pay for her or because she realizes that she wants YOU back. is it money or love...
If i can't fall in love... I'd like to fall in chocolate! ~ Author Unknown