Rachel, I wanted to write and offer my condolences. You sound like a very strong person, and I wish you the all the best. I am sending lots of positive thoughts your way. I have not been through anything similar myself - my son was born healthy, and my pregnancy was very easy. However, my mother, my brother, and several of my friends have lost children either through miscarriage, stillbirth, or SIDS, so here is some advice I have gleaned through their experiences.
1. Join a support group. It often helps to talk to other moms who have been through a similar experience. Perhaps they can give you the advice you seek now. Many hospitals have support groups for mothers of stillborn children - call the maternity ward of your local hospital. There are also many support groups available online - look at ivillage and babycenter (MOMS club international also has online support groups. Talk to your board if you are a member. If not, I recommend it or something similar to any SAHM, you can find a local chapter at www.momsclub.org).
2. Seek counseling for your family, or at least for you and your children's father. My brother's daughter died from SIDS when she was 4 weeks; the loss was too much for them individually, and though they had two more children, it ultimately was the source of the rift between them, resulting in their divorce. It was also very traumatic for my neices - the oldest because she remembered her, and others because their mother remembered her and constantly talked about her. Children are very perceptive. For the strength of your marriage, and the mental health of your family, please seek counseling. Some insurance companies do cover mental health. If you can't afford it, there are many local agencies that offer counseling for free or minimal cost.
3. Allow yourself and your family time to grieve. Your body is not the only thing that needs to heal. The emotional wounds from this loss should be allowed to heal, too. Listen to your family. Is the father of your children ready to try again? Perhaps he is not willing to risk the loss, even if you are. This is a difficult time for all of you, make sure any decision you make is with a clear head, not one due to grief over your loss. By this I mean, I have seen many women have a child as soon as possible after the loss of a baby, having been told it will help them heal emotionally; it doesn't always work that way. In many cases, the woman begins to resent the new child/pregnancy as a challange to the deceased, compares the new baby to the one they lost, or becomes mired in depression due the difficulty of dealing with a newborn compounded with their grief.
4. Follow your heart. Many people will offer you advice. Some are well meaning, others do it to advocate their own agendas, but ultimately, you are the only person who can decide what is right for you. Would you be okay adopting a child? Would you be happy not having another child, and focusing your energies on the two you have (not always wondering what might have been)? Or is having another biological child the most important thing to you?
Also in the follow your heart category, you said that you knew something was wrong, he was in distress but they told you he was fine. I am not trying to say you did anything wrong, but I think women know their bodies and their children, and if you feel like something is wrong, it probably is - don't stop looking until you find somebody who takes you seriously and can give you answers, or an explanation to how they know nothing is wrong. Listen to yourself, trust in your own judgment. If you don't, who will?
***And on a side note: you wrote "Most of my time is spent being distracted from what I thought I needed to do, but can't remember what it was anymore." and somebody told you this is a sign of extreme stress. This is not necessarily true. There have been studies that show a woman's brian changes during and after pregnancy. What we call "mommy brain" (which is basically what you are describing, we've all been there sister) is very real, biologically speaking, and happens to the majority of women. Many women's brains will even change again when they stop nursing, or return to a professional job (SAHMs, no such luck, at least until the kids go to school), reducing mommy brain.