wow. That really sucks. I would have no idea how to explain that one to my 8 year old. We live in a really small town, so I imagine that I would have the same issue. My XAH hasn't been around town in over a year now, and parents do trust me to have their kids at my house. Just do what you do, and eventually they will see that IT'S NOT YOU, and the friends will be coming over again. I know it doesn't make it any easier right now, but I don't see how they won't be able to see it in time.
Hugs.