Beenthere and Dawn have very perceptive and interesting posts -- please take a second look at those. Is this behavior of MIL's, being carelessly rude to your family, insisting on her routines, etc., getting worse? Does she seem to cling to your husband and the rest of her nuclear family more, or has it always been this bad? If the behaviors and attitude seem to have been getting worse -- it may be a sign of aging (but not necessarily Alzheimer's as someone mentioned -- that's quite a leap to make). Older people can grow irrationally clingy about having things EXACTLY as they "always have been" even if, in reality, things have changed in some years. They also can grow suspicious of people they've been acquaintances with for a long time (has she always treated your family badly or is that too a more recent issue?). I'd sit down with your husband and other relatives and see if anyone else notices changes in her. She may be utterly unaware of how offensively she's behaving. This is not an excuse -- but just a possible explanation.
As for the immediate issue: Your husband (not you! Why, on Mamapedia, are the daughters-in-law always, always the ones wrangling with MILs when it's the son/husbands who should deal with mom?....) should tell her: "We reallly would be delighted to have you over on Sunday. It's our big family celebration and we want you there. We're planning X, Y and Z, which we think you'll enjoy. If you think it's too much trouble to bring everyone over here -- we will help people get here and pick you up if you want. But this is the day it all happens, and we do plan to spend Christmas Eve and Christmas day here at home with Nicole's family this year so we won't be at your house on Monday. We've been really clear about these plans for a while now so that no one, including you, felt blindsided or left out. If you choose not to come on Sunday we will miss you but the celebration will go on. We'd truly prefer to have you here and will try to make that possible but it is your choice."
Then have a LOT of specific activities planned at your place for Sunday if she does come. I would not let things slow down while she's there as it gives her an opening to make comments or say offhand, snarky things to your side of the family. Have a schedule in your head and always be ready to say, "Okay, it's time to take photos!" or "Now we're going to have the kids sing carol X" or whatever. Keep the focus on the younger ones, have activities always ready to go, and have a definite ending time for this get-together -- don't let it turn into hours and hours of hanging-out time, if you worry about her behavior toward others. It actually would help if you can enlist someone who has to drive her to your house and who can be the one to say, "We need to leave at (time X)...leaving in 30 minutes....hey, Nicole packed us some fruitcake, isn't that nice, since we have to leave in 10 minutes..." etc. (Kind of like with a toddler: Constant reminders that departure is coming.)