A lie about my sexuality has ruined my reputation and my marriage. What should I do?

[Papi]

I am a 30 year old married man and five years ago a homosexual co-worker of mine lied to my community of about 7,000 people and told them that he had performed oral sex on me. This was a lie but I use to ride to work with this homosexual for about two weeks when my car was not working. It has ruined my marriage and numerous friendships as well as my reputation. What can i do within reason to reverse the effect this has had on my life? I asked the man why he did this and he just says that he is sorry. In the heat of an argument, my wife will call me a closet homosexual and tells our kids that too. It is so embarrasing. What can I do in a civilized manner to get rid of this rumor? I am so scared my kids will hear this lie when they get older. To be honest I am VERY angry and I have been for five years about this lie.

This incident allegedly happened before I met my wife but was told to her by numerous people. It never happened.

[Unregistered]

What can you do?

Stop being afraid. Embrace the lie, embrace your good/evil, embrace the rumor.
What do you think/feel when people say this, or what do you think/feel when you think/feel about it?

Your wife thinks very seriously about the issue. She shows feeling when she thinks about it. She thinks about it alot when she feels the most (probably during sex). If you want to get this rumor dissed, go through your wife. If she doesn't defend you, no one will.