Cory, I'm sorry man. You're going to have to just detach man and be the bad guy. Stand up for yourself a bit and avoid being nice to her. You have to show her consequences immediately. 180 in your situation would be to back away, show no emotion towards her, and privately deal.
In the case of an affair, she will make anything up. Don't read into any of that, any of her actions, anything she says.
GAL hardcore. Go out with friends constantly. Be gone, distant, smiling, and happy. 180 on her so hard, her head spins.