oh my goodness!!!! you're life is like my mom's life... even to this VERY day, my grandma acts the same darn way.. she always have something negative to say about my mom, and if it doesn't hurt my mom enough, she just LOVES to tell the whole world how much of a bad daughter-in-law my mom is.. and of course, i love my grandma to death, but she always disrespect my mom like that.. i hate her for that.. the things that she does towards my mom effects me more than the love that she personally gives to me, my siblings, and my dad... why can't she just accept the fact that now my mom is her freaking daughter-in-law and she deserves the respect that she wants after over 20 years of losing face to my relatives??? why?? is it really that much to ask??? and my grandma acts as if she's a little child who uses her son(my dad) to defend her in everything she do???
*sigh* I personally, 100% understand what you are going through.. and i don't want to scare you, but as a grand-daughter, i know it will effect very much of your kids' life if this continues, unless of course you are able to escape away from this woman.. and i don't want to sound like she's the devil, but whatever that she is doing, is just WRONG, plain WRONG! Growing up, knowing that my grandma was like this towards my mom, my parents hardly got along with each other... it was sad! and even to this day, my grandma doesn't know when to stop! she continues talking to ppl about my mom, and it really hurts my feeling knowing this.. also, my grandma is the type that loves to hang up on ppl on purpose whenever someone piss her off the phone... and that makes me even hate her more... and yeah, it really angers me....
p.s. i hope that you will be able to fight off this problem, and live on with your life.. if you want to stay in this marriage, you have to wake up your husband to see the truth, and stand up for yourself when your mother-in-law is lying... don't be afraid..... good luck!