Hi Mattdad. I've being following your thread and it's like reading a horror story. I'm so sorry this is happening to you and I really wonder if you need to take time away from her to think on your own feelings.
If what she's telling you is true re all the sexual encounters and taking gifts off OM and then blaming demons for it !! What would you say to a close mate if his W did this to your friend ????
Do you both need to go to therapy ?? I don't want to be rude but your W defiantly needs serious help. You may need therapy just to deal with what's she's done
Take time for Mattdad to see what he really wants and don't just rush into trying to reconcile because that's your first instinct.