Mother-in-Law HELL

I have so much that I need to say I don’t even know where to start. My husband and I are currently living with my MIL and BIL. We are both in our early twenties and unemployed. We have been together since we were teens and have lived on our own for a few years, but had to find a place to stay after we made major overdraws at the bank many of them while out of town for my FIL’s funeral.(my husband’s parent’s were divorced)] leaving us unable to pay our rent or bills. Our only choice was to quit our jobs and move in with family many towns away from where we were living. I come from a bad family situation and we were always poor, so I couldn’t depend on them for help.
My husband and I try like hell to find jobs, but it’s just not happening in this economy. I really feel trapped. I don’t like living off or with other people as is, but my MIL makes it more than hellish.
First off we are just very different people. I’m am the feminist, atheist, liberal and she is the conservative, fundie Christian. (No offensive meant to Christians, but she’s the type who think gay people are going to hell and Jesus is coming to Earth in the next few years) I know this will be of issue in the future, but I can deal with that now, because she IS giving me a place to stay.
Furthermore, She is just plain crazy. She acts like everything is a huge drama and it’s everyone else’s fault, but her own. My teenage sister had a baby a couple months ago. She was in labor for more than 24 hours and my husband and I stayed there to support her. She had to have a C-section and stopped breathing on the operating table because they put the spinal too far up her back and she couldn’t feel to breathe. It was very scary and we got home at 6 am after we knew her and my niece were ok. My MIL knew we where we were going. That morning she wakes us up at 11am complaining because we were sleeping in when we should be looking for jobs and anything else she could come up with. She screams. She yells she throws things. She often has temper tantrums about things she loses (like her keys). This is almost a daily thing. I just try to keep quiet and not say a word either way, because I really can’t.
She has called me a bitch and threatened me and then acts like nothing happened hours later. She used to call my grandma and say bad things about me, until my grandma threatened to kick her ass. I wish she would….
She is super controlling of my husband and I think she may be munchausens by proxy. She sets up all kinds of appointments (mostly Psychological or Neurological) for my husband, which he goes along with and there is never anything wrong with him. She thinks that if he is proven to be retarded then he can get SSI or something. It irritates me that he goes along with whatever she wants just to shut her up. He acts like it’s a joke. She acts like he can’t remember things and talks down to himand he takes it. HELLO if he were retarded then he wouldn’t have got As in college and take care of himself for those years we lived on our own. This causes me to fight with my husband. Because although I can’t argue,he should be able to, she is his mother. He shouldn’t have to fear her and take things like that.
We have made a few mistakes and she is more than making us pay for it. I am seriously at the end of my rope. Any advice or words of encouragement would be much appreciated……