I want to say I'm sorry; I haven't been through that at least not yet, but that's gotta be the hardest thing to go through. I have some of the same worries about you with the kids being damaged by their dad's actions, but I have to believe everything will be ok. They do have good role models, and I also have a lot of great friends and I think my kids learn from them too.
Do you meet with the parenting coordinator soon? Sounds like you really need to!! I know you had a couple of other serious issues, and this is one to add to the top of the list. Then I think you need to pray (I pray for my X every day), and then let it go as much as you can and leave it in God's hands.