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Where does my daughter stand and is she being fair and reasonable

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Sorry if this is somewhat longwinded, I am just trying to divulge all the details.

My daughter was involved in a long distance relationship with her ex, they both worked for the same company but in different states, she fell pregnant (unplanned) and after a lot of thought decided to move interstate and set up home with the baby and father, she also gave up her job.

The baby was born a few months later in her new home and state, over the next year she became increasingly unhappy and depressed, we first suspected "Post Natal Depression" but it became more obvious that she was unhappy with her ex and the lack of support she was getting from him, he is very demanding and expects everything to be done for him and his sport playing was upper most in his priorities.

My daughter became more and more depressed and trapped in this relationship too the point she was seeing a doctor and prescribed anti depressants, she was constantly on the phone in tears, She tried on many occasions to discuss this with her ex, his response was to suck it up, you will get used too it, and he would storm out of the house and go to a mates place, My daughter had no such support at hand as all her family lived 1000kms away.

Just after the baby turned one she could take it no longer and ended the relationship, bringing the baby back home, she and the baby currently reside with us (mum and dad) She is buying her own home here which is mortgaged and has owned it for a few years, it is currently being leased and she plans to move back in when the current lease expires. She has also found fulltime work and my wife takes care of the baby during the day. She has been with us for over 7 months now and the initial agreement with the ex was he could take the baby for a weekend every month, mother paying airfares Friday nights to drop off the baby and he returning the baby on Sunday nights, after a few months he stated he wanted the baby for 1 week a month, which is perfectly understandable, he wanted to see more of his child, after recieving advice and concerns over his ability to look after the baby, he is also very apprehensive to give my daughter details of who will be looking after the baby when he was at work, he certainly couldn't afford day care, and has a rocky relationship with his family, advice my daughter recieved is, it was not in the best interest of the child at 18 months old to spend so much time away from her primary care giver. My daughter refused and gave him the option of coming down here to visit the baby supervised, we offered him a vehicle to get around in, we also setup a webcam so he could talk with her face face to face but he refused claiming it was a ridiculous offer.

It eventually went to mediation which got nowhere, he increased his demands and wanted 50/50 custody 2weeks per month and bemoaned how he has been hard done by as she had left him, it was his lack of support and care which drove her away!.

He has now instigated court proceedings and increased his demands further, either the mother move back close to him or he will seek fulltime custody of the baby with visitation rights for the mother and a second option of 2 weeks per month with the mother paying all travelling expenses to and from the fathers residence. His affidavit to the court contained nothing but slanderous lies, claiming we live in a drug house and drug addicts are wandering the streets causing mahem, total lies and obvious to us he is willing to resort to any lie or underhanded trick too get what he wants.

Where does my daughter stand in all this and can he get what he demands. My daughter has now got a family law solicitor and is preparing her case. Needless to say it is a very worrying time for us all, I would also like to point out that we are not trying to deny the father his rights, but he is just going overboard with his demands, airfares are expensive and my daughter is struggling every month to pay these fares. he is also stating in his affidavit that he can no longer afford the air fares every month and it will double when the baby turns two and will have to pay for her seat.

Any advice would be greatly appreciated. Worried grandfather.
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