So you tell me not to have a problem with it because as a lady she likes him flirting with her? My goal is not to make her feel happy as a lady.

you get me wrong - YOU are a lady also, I assume?

have you never had your self-esteem boosted by a cheeky comment/glance/whistle etc etc? Did YOU read more into it or take it further every time? It's just a fun part of life, baby.

My fiance keeps telling me that his flirty friend is a lesbian. She constantly emails him -- I've read them and they are flirty! She also calls him (at our home number) to ask him out, he replies: "sure, my gf and I are available for dinner", which gives me some relief. He keeps telling me she's is ok and nothing is going on. Am I being jealous for no reason here? How should I approach him about my insecurity and now jealousy? Am I imagining things here? Has anybody been in a similar situation?

i certainly wouldn't entertain the calls - thats invading 'your' time and space. i think thats too much. why don't you speak to him about it, tell him its making you loose trust? how would he feel if a guy kept calling you and writing you emails? anyway, i don't have the best tack record with relationships, so you're best asking someone else.