I feel for you, Jenna, not great. You could have handled things with the craigslist better, but you did come clean. The whole friend thing is going to be tough for her to overcome, but her real issue is with the dressing (it can be a deal breaker for many women) if your description is accurate. Can you live with only dressing around the house when she isn't around? Can she live with that? You're both going to have to have to find common ground to move forward, and that is the best solution I see for you.