Crazygolfer,
You did not overreact, you did what any normal person in your situation would have done....got angry! As for your wife, she's embarrassed on many levels right now. Not only is she "caught" but she knows that everybody knows and is ashamed. She's blaming you b/c she's not ready to take responsibility for her actions yet.
Your last paragraph had a lot of questions...
"Any advice on what I need to do? Should I just call it quits and file for divorce? Should I try to make this work for my kids? Is it even possible to have a fulfilling marriage after something like this? Is it even possible for me to get these horrible pictures out of my head long enough to even try."
1. My advice is that you need to fix this. Attend the LovePath 911 workshop, it's for couples who are in crisis. And I'd say that fits your situation right now. You can click on the "Click Here" at the top of the page for more information on it or you can call 866-903-0990.
2. Do NOT quit and file for divorce! Go to the LovePath 911 workshop!! It saves every 3 out of 4 marriages that walk through the door. You have nothing to lose and everything to gain by going. Call the number above for all the details about it. It is a very powerful workshop and will be a blessing to your marriage.
3. YES, YES, YES you should try to make this work for your kids!!! Research upon research has been done on marriages that stayed together for the kids and ones that went ahead and broke up, and the ones that stayed together showed how much better off the children were! I'm oversimplifying but in a nutshell those were the results. If you attend the workshop, Joe goes into greater detail about that.
4. It is VERY possible to have a fulfilling marriage after something like this! You just have to be willing to try.
5. And as for your last comment about forgetting what you saw long enough to try. Well, I think those "pictures" should be a kind of motivation. That may sound way off, but if you truly love your wife and want to make it work you can use what happened to get on the ball and take action...to SAVE your marriage!
Earlier I mentioned Joe Beam. If you are not familiar with him, he leads the LovePath 911 workshop, among other things. If you want more info on him go to
http://www.JoeBeam.com.
I'm sorry you are going through this and I hope what people have said has helped. Just don't give up until you've exhausted everything possible to save your marriage. If you WANT to save it, and I believe you do.
Joanna