WOW, Couple (sorry I had to use the term) this information along with Gary Aldrich's account of the lack of Security INSIDE the White House (Unlimited Access: An FBI Agent Inside the Clinton White House
http://www.amazon.com/Unlimited-Access-Inside-Clinton-House/dp/0895264064 ), Yea, this story is not only plausable, it has a certain ring of Truth to it.
There is NO conceivable way that Hillary could NOT have known what was going on, and given that she both had NO outward reaction to that knowledge, in fact denying all knowledge of the infidelity until Drudge broke it, stinks of both a HUGE lie on her part (She claimed to know nothing about it) AND a HUGE cover up. The President was blackmailed, and Hillary likely ORDERED that it be kept under wraps at all costs.
There goes Hill's bid for the White House. Game over.