You thought your wife was "less than virtuous" and "immoral" when you married her... and she proved you right.
Maya Angelou says that when someone shows you who they are... believe them the first time.
You knew all that is happening now before it ever happened.
Sorry for both of you, and also, I can't understand why you keep in touch with the object of her affair. It keeps it fresh in your mind, tortures you, and nothing good can come of it. In this case, there is no point in keeping your enemy closer. Every time you talk to him is like reliving the first day you found out about what she's done.
And honey, she's a gold digger. You may be mopping floors, but one day you'll be on fries (this means nothing more than I listened to Kanye West tonight!!!) and if she can't stick by you in the bad, why do you want her around for the good?
Don't try to work it out. A wise woman in my life once told me that while a woman can get over a man having an affair, a man will truly never be over a woman having an affair. Call me a throwback, call me unevolved, but I believe this is true. You'll never trust her again, whether she earns the trust back or not.
And I also think they had sex, regardless of what was "confessed."
I also find it strange that you married her because she was pretty and that you referred to yourself as "handsome, but could beat him up" (I'm paraphrasing there). What does what either of you look like have anything to do with love or fidelity? Sounds to me like you took that leap of faith with that pretty little lady because she was a pretty little lady. Tisk tisk tisk.
I'm sorry if this sounds disjointed, but I'm writing stream of consciousness and I really feel like this girl showed you who she was before you were married, she was pretty so you married her anyway, and all you got was an ugly mess.
But I'm betting you've got a beautiful daughter who makes it all bearable.