I think you're in the most difficult phase of this; you're not sure which direction to go because there are so many unknowns right now.
I honestly don't know what is DB and what isn't DB, but I wouldn't give up the MBR - period. In my opinion, you need to be perceived as strong. Don't give-in to her demands. Don't allow her to get you to do things that she can do. Don't back down, and be ready to invoke consequences as necessary. It's tough to be tough, but you've got to be tough.
