Re: I have a scary decision to make...
I would get a second opinion! From what I understand, they suspect you may have incompetent cervix based on the fact that you were dialated and effacing way too early with your last pregnancy. That part seems clear... why you were induced at 37 weeks is less clear (but IMO doesn't change the fact that you had IC). Did they do a non-stress test before they decided to induce you? Maybe the "not responding" thing was referring to the accels/decels baby is supposed to have to pass a NST? You should be able to get answers from an OB/MW looking at your records.
From what I know about IC (I don't have it, but a friend and my SIL do), the cerclage can only be place in early pregnancy and when you get to that danger zone in the late second tri it is too late. My SIL was in a similar situation... she was 5 cm and 70% effaced the first time she was checked at 36 weeks with her son. She is pregnant again and they opted for progesterone shots during the second tri. I have a friend with 4 kids and her first was born at 35 weeks, her second at 27 week and then she had a cerclage with her 3rd and 4th and delivered full term.
Try not to let the lack of clarity with your induction last time prevent you from trusting your doctor in general. I don't think the induction had much bearing on the reason they think you are at risk for preterm delivery. Ask questions and weigh your options.
wife to Kyle
and mommy to Julia
2/15/2010 and Clara