I, too, am very happy not to have to deal with me exMIL. She lives across the country and visits twice a year, during which we go out for a cup of coffee and it's enjoyable. Aahh.
As for the kid exchange, this is something you are going to have to figure out for your own sanity. We've got a pretty simple set-up. Sometimes we drop-off/pick-up at the house, but most of the time it's done by who picks them up from after school child care. When each of us has them for the day, it's until school the next morning. So when he has them for the weekend, it's through the morning and I pick them up from after school care after work on Monday. That's the norm. There are exceptions, but 95% of the time that works for us. During the summer it's the same thing.
They have clothes and things at both houses and they go back and forth without bringing a bag other than their school backpack. One thing that is written in our marital settlement agreement is that their belongings are their belongings, so that if Dad buys them XYZ he can't say that it's just for use at his house. The kids control their things, especially nice since they can't control much else in their lives!
Me: 42/H: 37 T: 10 years/M: 8 D9, S8 Bomb: 7.23.07 Separated: 1.20.08 D Final 3.19.09 Affair started in '05, found out parts in 11/07. They married 11.26.09