I'm still so conflicted about what to do. Draw my line and say that "friends" don't treat each other this way, or to just act like nothing has happened and play it cool (I will always have the information for future reference, of course).
I assume you're talking about her conversations with OM? Are the two of you still living together? If you aren't then you really have no say in who she sees or is talking to. But if you are, then if she's living at home while carrying on with OM then she's cake-eating and that is not fair to you. It's your decision on how to proceed, your choices are to say nothing and take a "wait and see" attitude to see if your changes will eventually make her decide to cut it off with OM, or you can confront her now. If you decide to confront her it's important to do it in a calm, loving fashion. You don't want to rant, rave and pitch a fit as that will just make you look jealous and angry (and it'll make it easy for her to decide to leave). But if you can calmly sit down with her and firmly tell her that she has a decision to make, then it will have more impact on her. Just understand, if you give her an ultimatum (IE, ditch OM or leave the house) then make sure you're willing to live with her leaving because she very well might choose that.
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The man in me has a real problem not drawing the line because the terms I set forth last year have been breached (again) by both W and OM - a clear sign of disrespect.
If this is a boundary you previously set and she has breached it, then I would be inclined to have a discussion about it with her.