If I can just add my opinion, from a perspective outside of the situation with the SK and Scum...
Personally, I see a lot of involvement from the host to the players involved, and vice versa. The players are pestering the host for more information when he is obliged to not give it, and the host is influenced by private discussions between Shadows and Dragonator in his decisions about the conversion. I'm not talking about what was set to happen, no matter what, with the conversion before the game even started, I'm talking about the decisions made after.
It is my personal opinion that in a mafia game, the host and players should have a large degree of separation. "Because they claimed to each other" should not affect anything whatsoever in the game. Maybe that's just my style as a host, and maybe it's less fun, but I think that the host should give the information that he or she is supposed to give, and only that, regardless of anything the players did without the host's knowledge.
That being said, I can understand that you were under a lot of stress at the time, Hinck, and that you do regret lying or getting as involved as you did. I do appreciate how you tried to mend it afterwards. In the future, I would just suggest that you maintain that level of separation with the players. The same goes for people pestering the host for more information. I can vouch that it is extremely annoying and stressful to have that happen. As a host I am definitely tempted to interfere and give the information players want (especially if they ask really nicely or when I can see them stress about the game... Hinck in Werewolf).
And also, I definitely agree that criticizing the host midgame is absolutely inappropriate. Wait until the end, have some faith that the host knows more about the mechanics than you, and don't ruin it. This doesn't just apply to anyone in this game, but any other game. I know it's happened before.
And that's about as softly as I can put it. I considered not saying anything and staying out of it, and as someone who wasn't directly involved maybe I didn't "know" anything, or "see it for myself." But I think it's only fair that I (and anyone else) got to say something about it. Criticize me for it, whatever. I just hope that we can take a step back and actually learn from what happened, rather than just argue about it (which seems to be happening, fortunately).
On a lighter note, the game was very entertaining to watch. Everyone on the dead writeboard were on the edges of their seats towards the end, and I thoroughly enjoyed it. The whole SK-converted-scum-but-not-really thing reminded me of the movie Miller's Crossing. If you haven't seen it yet I highly recommend it. It's also very applicable to mafia.