Need someone out of the picture completely to help figuring out LOVE and SPACE?

I am a single mother of 2 children and meet a guy online that ended up knowing a lot of people I knew...for example my x and my best friend. Its been a Crazy kind of love for 5 months....a couple of weeks ago he told me that he loved me. Which is huge! I! We have been pretty much together every single day with our children getting to know each other and they are ready for us to do the M word. So yesterday we get into a fight. Which we do have a lot of disagreements ...because I am scared to death.. I want him to be the right one so I pretty much self sabotage and act with attitude instead of how I really want to be.(guarded) He finally is sick of us and our communication and told me that He needs some space...I am clouding his thinking...but he still loves me and wants to date me and go to my sons birthday party this weekend? So I know I need to give him space ...but am I missing something Here???When he says he loves me but needs some space? huh? I have pored my heart out to him?

Fact: you and him are CRAZY about each other.Which is good. Second fact: it's possible to drive each other nuts even though you like each other. Give him some space, it's not personal. You're just getting on his nerves cuz he's spending too much time around you. Tell him to take his space and to let you know if he misses you or anything and then you also go and do something fun. For the future, make sure you and he get some alone time away from each other every so often. Even couples that live together do this.

As everyone else says you two are in love.. And the M word isnt so scary.. because you have the E (Engagement) word before it. I would start being yourself.. Honestly it is going to end up affecting your relationship. He loves your kids, your kids love him, vice versa with you. Their is something there that he loves about you. Dont keep it guarded and hidden from him show him how you are, be yourself!! I know it is hard because you have already been through alot and this could either be the dream in hiding or another devestating loss.. So you need to be honest with him and tell him you love him tell him you want to spend the rest of your life with him. Let him know how he makes you feel and tell him your concerns. I wouldnt hide anything from him or worry about how he might react because he obviously knows your past (friends, ex, kids).
The whole space thing might be a way to clear his head. If you to are argueing he might not want to take it out on you. I would act normal at your sons party and when you get a moment alone tell him your ready for the big M word, your sorry for pushing him away or fighting, your willing to change somethings to make this work..
Every relationship has faults thats why they last. If everything was fine and dandy all the time, you honestly wouldnt be happy ive been there done that.