No problem, I love to help :-)

About Lisbon, Lisbon, the city is quite expensive not only in terms of housing as in terms of life cost in general: parking, eating etc etc

However, Lisbon has a uge suburban area. A first ring is made of 'dorm' kind of neighbourhoods with a lot of social problems and where I wouldn t advise you to move with 2 little children but there is a second ring, about 30 minutes driving from Lisbon, like the Cascais, Sintra (village), Malveira or Alcochete area, where you can find a good life quality. Cascais is a little bit expensive but it is where most foreigners live. But in Sintra, Malveira or Alcochete I think you can find a 2 bedroom flat for around 500 euros. Cascais should be closer to 600. There is a lot of demand for people with technical skills like mechanics here in the area, but due to the economic crisis, it will be difficult to find a job to start with paying more than 600 euros (netto). For you however, it would be easier. There are a lot of foreign people (including americans) you can start a babysitting service for english speaking children, you can give english support classes to portuguese kids in secondary school, there are some jobs in call centers where they need english speaking natives like costumer support in the portuguese airlines etc... In the Lisbon area it will not be difficult to find a job believe me. A well paid one is almost impossible, but if you are willing to start with 500 euros (netto) a month you will soon find something. It must be difficult as hell to start everything all over again. But if you do make it, you should be incredibly proud of yourself because few can.
I am finishing writting my thesis now so I don t have that much time but in September I am on holidays and if you want I can send you some links of job adds or nice houses so you can have a look.

Best wishes
Ines