Ashritha,
Not everytime are members writing issues compared to other ladies in distress.. Yeah it is done sometimes, when the person needs a reality check that the problem can be solved or when the person just goes on and on complaining and defending but not ready to try any suggestions given here.. :) That is all..
But, YES. EVERY PROBLEM IS UNIQUE IN ITS OWN WAY ! What seems to be Oh ! That is it ?? for me neednt be the same to someone else ! :)
So, do not worry.. about not getting any suggestions to deal with your MIL..
Here goes mine

..
I totally agree with you on the " sophisticated taunting " ! It is quite irritating.. Ok.. What she did in the past needs to be left as a bygone.
NOW is what you need to concentrate.. I hope by now, you know how your MIL would behave at any given minute..
When you know she is about to blow her trumpet.. SMILE !!! Say ,
Oh, Yes ! Amazing ! NOD big time !!
Is she repeating it again in another 5 mins ? Switch off your mind from what she is talking.. GAPE at her ! Look confused , twitch your eyebrows and say OK.. ! Turn your concentration to your baby ..
Does she go on about her Daughter ? Listen for a few seconds and START YOUR OWN CONVERSATION ! Say anything under the sun ! :)
Turn around and fondle your baby !
You dont have to always talk back to people smart when you know they are taunting you, a simple body language will be all enough !
Maybe the person wouldnt understand your expressions.. But, YOU WOULD !

Makes you feel, you have cared less and not wasted much time listening to bullies !
Ashritha, as far as the talks are self praising, praising daughter and daughter's saree.. Behave cluless ! But, never keep quite when anything is been told about your parents.. They neednt be victimised for just nothing. But assume your MIL hasnt spoken anything bad since the time she has been here, about your parents.. if so, we could deal with that. Else, just ignore that part.
Take care..