Ty, This a tough situation you're in. Moving out is of course a drastic step, and not one that I would have suggested - all of the things I think you should do can be done at home. That said, your wife has to my mind been living in cloud cuckoo land for a long while now, and at your expense. Maybe she needs a dose of cold reality to bring her to her senses. Perhaps you should stay with your friend for a week or two, so that she can see what she will be missing - tell her you will be away for a week or longer, to contemplate the future of your marriage. I feel sorry for the kids, especially the 11-year-old. I presume he's already been through the break-up of her previous relationship, and is no doubt once again feeling insecure. Then there is your own 2-year-old. I suggest you visit for an hour or so everyday for their sakes. Talk to your wife, but be firm and consistent about what you expect from her (see my second post to you) if you're to return. Do not allow her to manipulate you into feeling guilty - she is the deceitful one, not you. However, like S I think you should indeed press her to explain why she doesn't think she can stop cheating on you. If your marriage is to have any kind of a future, you will both need work on yourselves and then learn to meet each other's wants/desires. All the best, Strong&Alive.
"A man can be destroyed but not defeated" - from The Old Man and the Sea, by Ernest Hemingway.
Which I take to mean that every man has within him a spirit of relentlessness and optimism. Its already there; he just has to cultivate it.