What to do about Medaling MIL and Nosey Nancy?

I suggest that you say nothing. Ever. People like that seem to thrive on the controversy that they create. I bet she would love it if you called her up and told her off so that she could say to herself "See I knew she was evil and demon possessed." In my experiences nothing hurts these types of people more than the total silent treatment. Delete emails, dont answer letters or phone calls, total silence. If you have any mutual friends or other family members and they ask, dont volunteer, just say " We are done with her. SHe has made her choices and we have made ours. We no longer feel any need to support such obviously malicious and hateful behavior" And let me guess, to everybody else she appears to be a "good christian woman" Another trait of these people is they put up a great front in front of the general public then behave horribly to their family. Be strong. You dont need her or her drama to live a fulfilling life. I never even met my grandparents on my fathers side particularily because of reasons like this and I had a very good childhood and never felt that I didn't have plenty of good adult figures in my life.