Hi CherryC,
Re Vagifem versus Ovestin, it's a case of try it and see, as what works for one doesn't always work for another. Also, if you are dry inside, Ovestin may work better, as for some the Vagifem doesn't dissolve too well.
The advantage with Ovestin is that you can also rub some directly onto the labia. Regarding the old episiotomy scar, rubbing some Ovestin in gently might help. Has anyone examined you there, or have you had a look yourself?
If you have Facebook, it is worth joining the private Vaginal Atrophy Facebook group run by Jane Lewis (Maryjane on this forum). She has also written a good book called "Me and my Menopausal Vagina".
JP x