How to handle kitty jealousy?

So, I'm looking for advice on a small problem I'm having (which is a big problem to the two felines involved!)

About two months ago I adopted a very sweet, albeit depressed cat. He had been kept in a cage for five months before I adopted him. I named him Jackpot because I hit the jackpot adopting him (: He was a very laid back cat who didn't even complain when I gave him a bath after I brought him home. No meows, no clawing or biting, although I could tell he didn't want to stay in the water any longer than he had to. He slowly began to get happier, purring more often and getting a little more active. I thought that he might be bored because even though we have cat toys and a piece of cat furniture for him to play on, there just isn't all that much to do and he only wants to be petted for so long before he has had enough.

Anyway, I decided to get him a friend. I figured that the cats could entertain each other. I was most worried about my first cat being afraid of the second cat because my first cat is so passive.

Wrong.

I get the second cat home -- who is also a very sweet cat, called Peanut Butter -- and immediately Jackpot starts to hiss at her. I figured that this was normal behavior, and I kept the two cats segregated for a while to try to keep them from feeling threatened (and spent most of my time with Jackpot, trying to reassure him that he was number one cat and very much loved). Peanut Butter tried to make friends with Jackpot, but he refused to be nice to her, growling and hissing whenever her saw her. Slowly this behavior began to subside, and he grudgingly began to tolerate her, but it hasn't progressed past this point for the past month and I'm not sure what to do. It is especially problematic whenever I'm petting Jackpot and Peanut Butter decides to say hello. He gets furious and growls at her, and tries to swipe at her. These are the things that I have tried to do to solve the problem:

-Petting both cats at the same time (Jackpot gets in a huff and walks off, leaving me with peanut butter)
-Ignoring Peanut Butter when she comes to say hello while I am petting Jackpot (Jackpot gets angry and attacks Peanut Butter and then walks off)
-Pushing Jackpot away from Peanut Butter whenever he tries to attack her

This may not seem like a huge deal, but Peanut Butter is a social cat who really wants to be friends with Jackpot. And Jackpot is so upset that Peanut Butter feels that its okay to jump on the bed and be petted, that now Jackpot avoids the bed, which used to be his exclusive territory, simply because she thinks that it is okay to jump on the bed every now and then (and I do mean every now and then, Peanut Butter has her own hideout she stays in almost all the time). As the human, I'm looking at this cat perplexed, and thinking "Can't you guys just share the bed?" Apparently this isn't the case. Its also confusing because Peanut Butter still wants to be friends and isn't acting aggressively towards Jackpot whatsoever.

I understand that Jackpot doesn't need to be "best frands" with Peanut Butter if he doesn't want to be, but, I feel bad that he gets so jealous he just up and leaves every time she comes around to say hello, no matter what I do. I think that he is less happy because she is here. I have thought about getting rid of Peanut Butter, but Peanut Butter is a very sweet cat who is attached to me, and just doesn't understand why Jackpot takes an attitude towards her. I'd like to figure out a solution that would make both cats happy. I imagine that they're both happier living here than before they came here -- Jackpot was living in that tiny cage for months on end, and Peanut Butter got very little personal attention because she was in a shelter with 35 other cats (no cages, though, which may be why she's so social, and keeps trying to make friends with Jackpot.)

So, I don't know how to solve this little domestic dispute. If you guys have any ideas, I'm all ears.

Ah, a very familiar tune. I've heard that if when getting a second cat, a cat of the same sex is better for companionship. Found that out after my sister got a girl and our boy acted similarly to how Jackpot is acting. You probably don't want to hear this, but this is an issue for your cats to work out. One has to be dominant and human intereference just doesn't help. We had some problems with Twishy and Holly, but with time they learned to live with each other. They've never been friends mind you, but they each figured out their territories and they even (very secretly) play together at night, sometimes sleeping near each other on the couch (never touching but near).

My advice is give it time (up to a year or more). All three of you will learn to live in a harmony of sorts. Also, I agree with you trying to make Jackpot feel extra special. I'm sure it helps reassure him.

I've had 9 cats over my lifetime, and take it from me...that's normal behaviour. Cats who are not siblings rarely reach a point where they routinely play together or curl up on the bed together.

They will work it out and learn to tolerate each other, but it may take a while. My cats are still a little wary of each other and it's been about 4 years since we got the youngest...but in general they are fine together. The other day I even came into my bedroom and found all 3 of them sleeping on my bed :laugh: I know from experience that seeing one or both cats distressed can be a little distressing for you yourself, but you just have to let them be and continue to be as loving as possible towards both and try not to make either feel excluded.

What my family and I have also found is that although they may THINK that they are annoying each other, it becomes evident that cats do like to have other cats around because if you have two and one dies or disappears, the other usually starts to exhibit behaviour that definitely seems to indicate loneliness.

Thanks guys! I suppose its disconcerting for me because the two cats I grew up with weren't siblings, but became very close with one another nonetheless. So I thought that I would run into the same situation here.

It is hard to see them upset with one another especially because I so want them to be happy.