It's been brought to my attention that a story very similar to mine was published in 1987 by an author named Ken Grimwood. http://en.wikipedia.org/wiki/Replay_(novel)
There are some important differences in the base idea, but the similarity is strong.
I want to thank everyone for the feedback. I'm going back to the drawing board to write this in 3rd person narrative style. I haven't decided between the different modes of 3rd person, but I'm leaning towards omnipotent. The chapter already posted will be re-written as a journal referenced throughout the story.
Thanks again for all the support.