Thanks for the replies. The girlfriend thing is something hubby and I thought between the two of us because she was interested in doing things with us that are months away like going on a trips together etc. and that she implied that the sexual part was going to go in stages but has had no interest since. She was all hot and bothered about it before and then nothing after.
She knows that I am shy and that she will have to start things but then she doesn't want to. She has put me in situations where she is acting like she wants me to touch her or kiss her but I am not the kind of person to normally make the move and she knows that.
We are very confused about why she teases hubby but then does not want to follow through. Yes, communication is a problem but now that he does not feel as close to her as a friend we are hesitant to put it all out there with her.