L.F.
MILs are like black bears. If they attack you, they mean to eat you, so you must fight them back. That's been my experience with mine. If I were you, I'd remind her that Riley is MY child, and she better start showing some respect if she wants to be part of her granddaughter's life. You have every right not to send your child off to someone who might say things like that in front of her. You are not obligated to give in to ANY of her demands with regard to your daughter. Grandpareting is a privilege, not a right. This is just my two cents. If you don't demand respect now and refuse to let her trample you in the hope of keeping the peace, she will ALWAYS expect to be able to walk all over you.
I think the gifts are nice gestures on her part, but as far as the demands on time and telling you you're not good enough for her son, that's just not right. Your fiance should not let that happen EVER. He should know that if he won't check his mom, you're going to have to do it.
.....LF