My MIL hates me (feeling is mutual) and actually told my husband that I ruined her family.
Things were fine with her until I took off the rose colored glasses and saw what she is really like. My kids are 10 and 6 and she has told them that I don't love them and they can come live with her. She has called CYS on us for the kids being home alone for 10 minutes after school until my husband got home from work. She hates me because I tell her how it is going to be with MY kids and with MY family.
She has my BIL's wife and other BIL's fiancee completely bowled over and they follow her like zombies. My husband and I do not go to her house, try hard not to let her in our house and really try to limit the amount of time that the kids spend with her, but in the end, she is their grandmother and I don't want to deprive them of that.
We have had some pretty nasty fights with her and she knows exactly what I think. I am sure she is surprised that hubby and I are still together after almost 12 years and 9.5 years of marriage and was hoping we would divorce so she could try to get the kids. Not gonna happen. I REFUSE to let me kids be raised by her. She is under the impression if something happens to us, that she will be getting the kids. Um hell NO!!!! They will be going to my mother or their godfather.
She tried as hard as she could to ruin our wedding day. She refused to come out of the house and be seated, she screamed at my mother (a big no-no!), fought with my FIL (they are divorced), yelled at my B'sIL and our friends. I honestly don't have one good memory from that day after the actual wedding was done. She totally ruined it.
So, here is my advice... Your husband should be on your side. He chose you and that is more important than his parents. You have a child and that is more important than his parents. While confronting the in-laws isn't a great thing to do, it made me feel better and let her know that I wasn't afraid of her and wasn't going to take her crap anymore. She hasn't tested me since then, because she knows it will end badly and she will never see her grandchildren again. Talk to your husband and get him to understand how you feel. And, DO NOT let them upset you so bad that you get panic attacks, they ARE NOT and NEVER WILL BE worth it.
Good luck!