Kim - as much as I hate to see you standing in my shoes, I have to say you did good. You drew your line in the sand, said what needed to be said and that's it, all you have to do now is stick to your guns and I wish you luck. I would love to tell you your ride is almost over, but now the hard part really begins.
Seems your H is just as much a coward as mine - cant do or think $hit for himself lol!!!!! Your H is in a catch 22 and he's going to hang himself. OW may be making all these demands on your H, but he doesnt seem to be putting much pressure on you (I mean as far as telling you "YOU WILL DO THIS OR THAT") - you stand your ground, he ends up agreeing saying 'I know your right, and yes I know we said we'd be friends and we will.' and thats how the convo ends.
Now do you even think he's going to tell OW that he has no spine and that you said no, so thats that????!!! hell no! he's gonna lie his a$$ off and tell her some off the wall thing to get her off his back, or he'll turn it into some horrible showdown you had in the kitchen. But the backfire to that is either way she KNOWS he's lying to her.........................which is why she's making more demands, which is why she calling you. She's desperate because she cant trust him and she will do whatever it takes to make him 'faithful' to her and only her. You would have thought the whole 'I'm married but ok just this once' would have been a clue??
Hang tight chick! do for you and S, and f*ck the stupid stuff.