Bill, do you remember a guy that used to post here three months ago, whose wife had been looking at apartments to move to because she could not stand the R any longer? They were headed for separation and divorce. I think he was an engineer from CA, worked on computers or something... you know, those Centrino thinggies... Two little kids... Can't quite remember the handle...
What I mean is: you have made great progress in a very short period of time (heck, it takes some people years to get to the point you are at). Your W's problems with intimacy were not created in a day, or three months, and will not be solved in that short time. She is showing a lot of improvement but she needs you to continue to be patient. Do not take it personally, her telling you about her need for space shows that she trusts you not to hurt/reject her. She is scared and skittish... normal reaction. Keep creating an environment of comfort and trust and she will eventually get closer and closer. Push her too hard too soon and she'll bolt and undo some weeks of effort. Not the end of the world, but a step backwards.
So make haste slowly... You are doing great so far.
"You don't throw a whole life away just 'cause it's banged up a little"
Tom Smith in "Seabiscuit"