I keep my MIL in check, and I live in walking distance from my IN-laws. My FIL is cool, really is a laid back guy and enjoys when I poke at my MIL, I think its because I can do it and don't really get anything back from it and he knows he really can't too much because he lives with her hah
You just gotta keep her in check but give her, her time to be the annoying person as well......its life