This patient support community is for discussions relating to relationships, abstinence, arousal problems, birth control, cohabitation, commitment, communication, couples counseling, desire, sexual technique, and sexually transmitted diseases (STDs).
If I were you, I would tell your partner how you're feeling and that this situation simply isn't working out for you. If you are his first priority, then he'll clear it up or reach a compromise. As far as your friend goes, tell her the same thing (situation makes you uncomfortable). It's a temporary situation and you've fulfilled your obligation to support her. Don't accept excuses.
I agree with slow healer. Hey... it is your house and you decide who can stay there and who can't. Always trust your gut feeling.... always.