its important that, having discounted termination as an option, DSD now looks at the other two options available to her - keeping the baby and adoption.
i believe that they now have "open adoptions" where the biological mum and the prospective adoptive parents share parenting for the first year, so that the baby is not traumatised. I believe that the biological mum still gets contact with the child thereafter. She should speak to a social worker to discuss this as an option, and to find out exactly what it entails.
However, if this baby was conceived in the hope of filling a hole in her heart left by her mum....
If she expects to keep the baby, she needs to ensure she understands exactly what that entails...financial (Nappies, clothes, shoes, car seat, cot, pram, changing mat, baby bath, formula, steriliser, )...Get her to do the research, so she knows just how much this baby is going to cost. Make sure she understands that the rest of the family will have to make financial sacrifices for her and the child, like holidays, mobile phone top ups etc. All her income (pocket money, child benefit) will now be going to the keep of her child, and providing essential equipment. Make sure she understands this.
I also agree with those that have said she needs to know that you will not give up your life and career because of a decision she has made. And while you can offer to babysit once a week, she needs to find out about the things she will be entitled to and the grants she can apply for - maybe your local midwives will know?
tess, make sure you do lot lose yourself and your needs in all this drama - is easy to take on the role of primary carer because you can. you could find yourself, 7 or 8 years down the line, with dsd moved out with child, sons gone, no career and a seething resentment for your husband. Don't immerse yorself in your DSDs life choices, step back and let her find her own way.