Don't worry. Its simple... You mind is busy with being lonely, wanting to have sex and not wanting to have an affair with another woman. This mixture of sexual desire and fears are reflected in your dream. Examples:

1. You obviously are NOT interested in the consequences of having an affair: "...she was definitely in love with me.." ..."I found myself perplexed and dealing with a second woman's emotional baggage and missed dreams..." You are extremely aware of the fact that sex creates an emotional baggage you do not wish to deal with. 

2. You wouldn't trade Sara for another: "he paid us in cough drops when we had diamonds" - your relationship with Sara is the diamonds, this alleged other woman is the cough drops.