@worriedsick,
Having her live with grandma is not the solution. You need to get your daughter back in your home and leave grandma out of it - she raised already children and should not be forced to do your job.
I admit that teens can wear on you (I have one myself) but if anything they
need our understanding more than ever. Being strict and enforcing stringent
rules don't help anymore, talk, talk, talk, and explanations are in order for
her to understand what the ramification of her actions are.
Smoking weed is something every kid will try, take it as a given, but how you
handle the situation will impact her future drug use. Educating her what will
happen to her mind and her body if she continues smoking pot, will have far
more impact on her. You also could take her to a drug rehab and have her
talk to people there, get an idea what will happen to her if she continues taking
drugs.
Your daughter is 17 years old, almost an adult - you have to talk to her accordingly and put your husband on a leash. He is obviously part of the
problem. If he cannot make himself understood in a rational manner, he
should shut up entirely.