(Sorry for the way too long post, just lots of stuff to get in here. Cliff notes aren't my specialty.

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My wife and I are/were married for nearly 9 years (getting divorced now) and lived together for 2 years prior to the marriage. Throughout the entire course of that 10+ years, she was quite similar. Needed intricate details of my entire day, every word spoken to people, details on every minute spent on-line, etc. She would overreact to anything I did/said that she viewed as "not okay". Two beers in one sitting made me an alcoholic. One toke off a friend's bong (of which I very rarely partake) made me a drug addict. One loud negative comment during a Spurs/Cubs/Raiders game meant I have anger issues. One comment about anything annoying/frustrating thing she did made me an asshole. You get the idea.
I've never cheated or insinuated that I wanted to. But any time I spoke to/hung out with a female friend, the interrogations would start. Did we do anything? Did she (the friend) try anything with me? So on and so on. After 30 minutes of grilling she couldn't understand why I would be upset with her behavior.
She also hated my best friend and most of my other friends. She always accused me of talking bad about her behind her back. She would freak any time I wanted to spend time with a friend without her. She would even get su ious of me if I would visit my parents!
One word answers to her questions were downright unacceptable. "Fine" wasn't good enough for "how was work?". "Hung out, bull ted" wasn't enough for "what'd ya do at your friend's place?". And if I tried to elaborate my time spent away from her, it was always "What else? What are you not telling me?" It became infuriating. Again, my frustration was met with confusion and anger.
Now, I could understand her trust issues to a point because her parents divorced because of her mother's infidelity. I could even understand her hatred of my best friend (again, to a point!) because he was married to and then bitterly divorced from her sister. But this behavior never calmed down or got better. It only grew worse as the years went on.
I usually would include her when I visited with friends or famliy because I thought that would set her mind at ease. It didn't. She would just get mad because I was "leaving her out" or "ignoring her" around my friends/family. I would try to reassure her that it wasn't the case but to no avail. She would proceed to get mad and cause a scene, embarrassing me and making my friends/family uncomfortable to the point where we would have to leave.
And still, she never understood why I would get upset over her behavior.
Any time I would try to have a reasonable discussion about it, it always turned into an argument for which I was inevitably to blame. And if I tried to take off for a cool-down she would literally block the front door and wrestle me away from leaving.
Despite it all, I loved her very much and always tried to be a good husband. I wasn't always successful but I always worked hard to have a good marriage. What I ended up with was a wife who carried on an affair off and on for the better part of the past 2 and a half years. And, of course it was my fault. I pushed her away with my "anger, mental abuse (???) and 'being distant'". I forgave her for the cheating many times and tried to move past it only to find out multiple times that the affair was back on. When I finally had enough I kicked her out. Now she begs me daily to take her back and things will be better. She continually asks me why I want a divorce and accuses me of seeing someone else, cheating, etc.
Whew. Sorry to hijack the tread but I was trying to make a point in there somewhere. Oh yeah, here's my point:
If your wife has to have that much control of your life, chances are she has trust/control issues of which you may never see the end. If you truly love her then do your best to be forthcoming and honest. Do what you can to keep her mind at ease. If it doesn't help, get yourself some couples counseling and even single counseling if you can swing it.
If, despite all your efforts, things don't improve or deteriorate and it's more than you can endure, maybe you're just not right for each other. But only you and she can decide that.
I hope you and your wife can make things better and have a great relationship because I'll tell you this: ending a marriage sucks. I don't wish it on anyone.
Again, sorry for the absurdly long post and the thread hijack.