Kev, I think you genuinely have a good heart mate and you seem like you want to win people to the Lord...but there are times when you say enough is enough.
Ultimately, and this is what I think some either do not realise or try to dismiss...or maybe simply ignore is that no matter whether we refrain our friendship or not with an individual,
it is their own choices by free-will to sin. Some have hinted on here that if we refuse to fellowship with those that are openly sinning it will only make them more likely to keep on doing what they do. Sorry, but that is a load of rubbish. We all have free-will to choose what we say, think and do each day.
This can go for any sin. Gossiping, lying, stealing...etc. I understand some people have things going on in their life that is difficult. I have worked with some kids over the years with horrendous backgrounds. Children that have been abused, abandoned, neglected etc...but while we should be mindful of these things and understand where they are coming from, at the end of the day sin is sin. It is what nailed Christ to the cross. We can all go on about "loving others" etc and that is good in it's place. What I would do is just go and ask any addictions ministry that deals with people like that and ask them for their take on it. They will tell you not to keep fellowship with them but always provide the opportunity for them to come in repentance so that they may get help.
I recall being involved with an incident in work where one student stabbed another through the chest. I went in to see all of the fuss and found a student lying on the nurses table with a stab wound through the chest and blood pouring everywhere. Apparantly, the other pupil was about to stab him through the head with the kitchen knife until another individual pulled him off. To cut a long story short...the boy survived by the skin of his teeth. I thought I saw him die...literally on the table but he made it through an operation and recovered. Afterwards the school made me go for counselling (I didn't need it but there you go lol)...I knew what was coming. The first thing the guy said to me was that I shouldn't try and judge this student because of his background.
I didn't bother wasting my time on the 2nd session lol...
It doesn't matter to me what the person has done...and I think a lot of people on here have said this many times, but others have tried to twist our meaning...it doesn't matter what they have done...if that person is repentant and desires help then fine. I'll do everything in my power to help, go to counselling with them etc. If they don't then while I will let them know that the door is always open, I do not want to condone such behaviour by association.
I think I should start only hanging around people who are fornicating regularly. If no other Christians are around to love them and support them, I can't imagine why they would want to repent and come back to Christ. Then again, I already do that with the LGBT community so I guess I'm swimming against the wave already.