Huge mother-in-law problem?

I CAN'T STAND THIS LADY!!!???!!! Oh, before the wedding everything was fine. She stayed out of my husband's and my problems, she kept to herself, and knew better than to try to screw over the wedding (however multiple times she tried to get us to have a courthouse marriage instead of a church wedding). Now she has CROSSED THE LINE. She speaks ill of my cooking, and after I leave the kitchen to use the restroom or pick up clothes, etc, I come back to see her screwing up my dinner (adding tons of salt and pepper, italian seasoning...). My husband just says to leave her be, that she is ALWAYS like this. She is also a drinker, and LIES ABOUT IT! On the phone for her p.o., the attornier (she had house arrest for 2 weeks), counselors...she says she never drinks or smokes. LIAR LIAR LIAR!!!! She smokes 1/2-1 pack of cigarettes a day and blows them in my face, IN MY HOME!!! Of course the husband asks her to step outside, but then she comes back in smoking it!!! And with drinking, she drinks 3-4 beers a day (canned), and tells my husband to go on "shot" errands for her. SHE HAS HAD MULTIPLE DUIs AND WON'T STOP DRINKING OR SMOKING!!! I would not have a problem with her if she and my husband would start listening to me! He doesn't want to get her upset, and there are always fights between us now, when before his mother was not menacing in our lives. I have told him multiple times that I won't have our children around her if she continues her tirade over us, but he says that she will stop if kids come in the picture. I HATE HER!!! My husband laughs (laughs when he is nervous) when I start complaining about her. I have TRIED talking to her, to her new husband, to my husband...nothing works!!! We have only been married 3 months, but I don't want to stand another day with this woman...before we got married, I would call her mom, now I call her my husbands mother. I don't know what to do. Somebody please HELP US!!!