shouldn't have gone for the lips. cheek woulda been fine.
don't give up...sounds like she might be interested but is concerned regarding the kids. tell her you're not freaked out by it (you're not right?), don't talk to her about your online poker games EVER again unless you are making a buttload of money from it and she likes money, and just keep playing it cool. persistence is the key.
ff, you are the man. You need to write a book about this stuff. You've got it all together and then some.
Unfortunately, it's so easy to give advice when you're not emotionally invested. Once that happens, it's hard to gain back that perspective
RWS, I think you did just fine