Your mil should respect the rules you AND your husband set for your daughter. Maybe that is the problem too. You husband is equally the parent of this child, and he should be the one to sit down and discuss how he wants his child to be taken care of.
I hope that you are able to work out a set of rules with your husband and his mom that all will feel comfortable with.
That being said, it is very important for children to have as close as possible a relationship with all their grandparents, and too often I see women as pushing the other grandparents away. I hope that you are not doing this even though you have legitamate concerns.
Another thing you may find (if you've since had more children), is that alot of moms in the first year of two of the first child are a bit over the top. I totally was too. Now that I have 3 chidlren, the oldest of which is 6, I am definitely more relaxed, and if the grandparents do something (of course nothing harmful), that maybe differs a little from me, I can let some things go. I'm still a stickler for the things I think are important (for example, I'm really strict about what they are allowed to watch on tv-- and this is more of an issue with my parents than my in-laws), but last thanksgiving when my mil made the kids a ice cream soda, I didn't have a breakdown because I don't give my kids soda. You know-- it's thanksgiving, and not a life long habit, so I let it go. Now if it was an everyday thing, that would be different. But, my husband and I are on the same page about things, and if his mom started giving them soda for meals on a regular basis, he , not I would step in.
I realize this post is old now, but I hope things are getting better, and that you guys are able to foster a better relationship with the grandparents. Remember, almost all grandparents want nothing more than to love their grandhildren.