Frank, stand your ground and see a lawyer ASAP.

You can bet she's getting all kinds of legal "advice".

Just the fact that she would threaten to make the kids testify about ANYTHING is a testament of how demented she is.

Prepare yourself for her to get even dirtier.

You have still done the right thing.

You might consider quietly lining up character witnesses.

And witnesses against her.

I'm sorry but it might go that route and you need to be prepared for it if it does.

Do NOT let her undermine your confidence with threats about bringing up the drinking incident.

Again, see a lawyer.