Then W said she wants me to be happy...and she still wants us to be friends and be able to talk to each other and be there for each other. But that she just doesn't want the M anymore. She told me that what happened in the past is in the past, but that she can't get over it, and that her feelings for me have not changed at all since she was first "done" in her mind, despite all the changes I have made.
Deja' vu!! That is practically word-for-word what my W told me as well. Wants me to be happy, wants to be best friends, but can't get over what happened in the past (but can't really verbalize what that is) is done with the M and doesn't want to "try" even though she says I've done 180's on every complaint she had.
I think you're jumping the gun when you say the M is over at S though. Lots of reconciliations don't happen until an S occurs. The WAS wants time and space and most of the time they just can't get it when they're under the same roof as the LBS. I validated W when she said she wanted the S even though it's the last thing I wanted. I looked at it as a needed step to a possible future reconciliation. And what I've found is it's been a lot easier for me to detach now that she's out. Hopefully you'll find it's a healthy step for both of you.