I'm very sorry...
All day yesterday, I couldn't get on the site, get pages to load, post...crap.
What I was trying to post for you was the thought to do whatever you had to do to get a lawyer. Others may disagree, but, in this case I think it is absolutely essential for you. You did a lot of homework, a lot of learning and had everything well in hand, but I just knew it was going to be of no avail.
The simple truth is the courts are more often than not not very kind to pro se litigants. Believe me, there are few things more frustrating than having the truth, common sense and 'right' on your side and not being heard. I will not hijack you post, but will start a new one, and I'll tell you how a very similar situation happened to me. I am so angry right now because I was desperately trying to advise you to get an attorney and get a continuance or ANYTHING that would have given an attorney time to present to the courts what was needed to be presented and the way it was needed to be presented.
A local attorney will know the courts, the judges and their temperments. A local attorney will know what to present, how to present it, in what order. He/She will know what issues are generally hot buttons for what judge, and if a particular judge is 'known' to be harder on fathers, mothers, etc. But, it is far from too late. Get on the phone, set up interviews with as many attorneys as you can. And make no mistake, they are interviews - you are interviewing them for the job. You want to find someone who is going to be glad to have a client who is proactive, one who is trying to learn all they can to assist their own case. Many attorneys, as a way to reduce fees, will work with you and tell you when something needs to be done that you can do instead of paying them to do for you. You want an attorney that specializes in child custody issues, not just in divorce.
I have learned more on these boards in the past 4 years than I could ever have imagined. I have seen horror stories and stories of remarkable kindness and justice. And like in your situation, I have had my faith in humanity restored many times over, reading and watching as complete strangers spend incredible amounts of time helping people they will never meet, people they could pass on the street and not recognize. Believe me when I tell you that people are bleeding with you and crying with you. And we will all celebrate when things are finally working as they should for you and for your kids, whether that be in their mom's custody with you having consistent visits and involvement in their lives or with you as their custodial parent.
As far as talking to the kids and telling them what happened in court, I completely understand what you did and why. There is no one on these boards who is a stronger defender in the innocence of children, these kids needed to know what happened. Only you can say if you could have or should have handled it differently, but I am certainly not going to pass judgement on you. If that is the worst thing you did or do where your kids are concerned, you having nothing to be ashamed of. Perhaps at some time in the future you could have a conversation with them explaining how sorry you are that all of this hasn't been transparent to them as it should be, but you want them to know that what you are doing is from your feelings of what is best for them, not that their mother or grandmother or anyone else is wrong. Believe me, kids will see through things sooner than you think, and it is definitely in your best interest, particularly if there will be a Guardian ad litem involved for you to say as little as possible to them about the whole situation.
As things progress, practice saying things like "Honey, I don't know what your mom or grandmother said" "I don't know what is going to happen, but it doesn't matter. All that matters is that you know I love you and will keep trying to do everything I can to stay in your lives and work all this out" "All this has nothing to do with you kids. These problems are between us adults" "Of course we are all fighting over you, that is because we all love you so much and we all want you and what is best for you. We just have different ideas about how to go about deciding what is best for you". You get the idea. There is everything wrong with kids being involved much less in the middle. But once they are, how you handle it will make all the difference in the world.
Just one note from personal history. My son, between the ages of 18 months and 6 years was under constant threat of being abducted by his father. For 5 years, he had supervised visitiation only. It was a horrible, horrible time, but he lived through it and so did I. My ex had plane tickets and was on the way to the airport on two seperate occasion. He had hired some loser to run me off the road in a remote, wooded area, while my then two year old was in the back seat. The list of things is unbelievable, and when he is 18, I will submit the manuscipt for publication, under a psuedonym. My point is, I truly understand what you are going through and what your kids are going. Hire an attorney, this is too big to tackle yourself. The next step is to get counseling, for both you and the kids. You are going to need the counseling more than they will. Talk to the NCMEC, they may have local referrals for you for someone experienced in all this. In addition to everything else they do, they also have lists of NPO's who work with and on the behalf of families like yours