Aimsmum,
I agree, dont send it from your dd.
But, if you think that your xmil has been unpleasant enough to give up some of her grandparently rights, then send it from you.
I had to refuse presents from my parents for the chidlren, because in the context of what my parents have done, I now think its insulting for them to throw a Christmas present at my children as though there are not major issues between us.
And yes, Ive had the "how can you make your children suffer" routine from my family, but frankly they (my family) have proved over and over again that they dont give a * about my children.