This reminds me something Maya Angelou said in an interview, I will paste it for you to read:
Tavis: How do you speak to people who really want to have that kind of love and warmth in their home and in their family, but they struggle in trying to make that happen?
Angelou: Well, sometimes the people who are in your family are not quite acceptable and you have to be courageous enough to say, "I don't like you. I mean, you do things to people that I don't support and I don't like you. If you were no kin to me, I wouldn't like you. It's not my fault that you're kin to me, so I don't like you. I don't intend to spend one day with you."
Tavis: And that accomplishes what, Doc?
Angelou: Well, it cleans you. It makes the person to whom that is said think about herself or himself, "What am I really doing wrong?", if he or she wants to make a change. But what it does for you is it takes that burden of pretension off that, "Well, I don't like him and I don't want him in my house, but you know, he is my cousin's uncle's brother's friend." Well, no, I won't. No, no, no.
Tavis: (Laughter) But, Doc, you're not suggesting doing this at the dinner table, are you?
Angelou: No, I just don't invite them.
You can go here for the entire interview: http://www.pbs.org/kcet/tavissmiley/archive/200511/200511...
I agree with Maya, even if someone is family I don't want to be around people I don't like and that make me feel bad. You don't want to be around negativity all of the time. Yes, she is your mom, but you do not have to inflict yourself or your children with her "disease". I would pray that she changes and in the meantime try to make you and your children's lives as happy and positive as you can. I am glad that you are ending the "negative" cycle with you and your daughter. You do not want to be your mom's age and have your daughter feel the same way about you. Hopefully your mother will seek counseling and change....
The problem is, it's her decision to change and she may never do it. You can only change yourself.