Wow... that job just gets weirder and weirder, doesn't it. Have you been able to put out any feelers with your friend, to try to get an idea of what's going on? It strikes me as really nuts that they'd be bringing in people so soon to do that stuff... I mean, given how long it took them to get you on-board, wouldn't they have had to have started the process with the new guy practically before you started?
When does he start? I guess you'll find out more when he gets there, and you see what he's actually doing... it would be hard for them to keep it a secret if he's going to be doing the same things you are, wouldn't it?
Given the timing, I don't know... I'd find it a bit hard to believe that it had anything to do with your reluctance to be an employee. They didn't figure that out until a few days before you started, right?
You could try asking your boss, casually, if you haven't yet (assuming you've started developing that kind of collegial relationship?)...
Are you still working on other leads, so you'll have a backup plan and next customer?

I know, it's not fun... but if you decide to get out of there, or if they decide they want someone who can be an employee... a backup plan will save you some stress!
re: The meeting - we were in the lab, giving demos. Everyone was standing... three hours of demos! These were executive-types from another company, I was surprised the presentation wasn't mixed up a bit more to allow sitting time. I wonder if this is normal, and I'm just a wimp. Honestly, even without the injury, standing for that long tires me out!
Thanks for the comments on socializing and dressing! I wish I was better at connecting in situations like this, I just hate for her to get the idea that I'm not interested, or wouldn't be great to work with. Who knows though, since it's been so quiet, I'm back to not getting my hopes up. Again, just trying to focus on therapy and figuring out my life stuff, since my job appears to be fairly stable, despite the fact that there's not a lot for me to do.
Dressing and weight... I know, it's so hard! My weight fluctuates SO much, it's distressing! And, I see people who are a bit heavy-set like me, but still manage to look polished and put-together, and I just don't get how they do it. I feel like I need a quick course in finishing school

!
Glad it's thawing out a little by you! Hang in there with the job situation... remember, most of the time the things we worry about don't actually happen (isn't there a statistic on that somewhere) - and even if you end up moving on, this should help you get new clients, right? Because now you've got recent experience to sell yourself... and even if it's short, it's a contract, so you can always sell it as, "Yup it was a short engagement, I came in and fixed some messes for them, and helped them get someone else up to speed to take over the boring day-to-day work. I'm great at getting messes straightened out by the way!"

I hope you hear something reassuring soon though! Being stressed is not fun!