Steve, You said you were a bad boy growing up so you should remember that every adult back then was the stupidest person alive! Maybe your daughter is going through the same thing. Don't let your stubborness (and hers) get in the way of being a part of your grandchild's life!
I don't know everything about your situation but I do know this- I have been a grandpa for 4 months now and that little guy just brightens my day everytime I see him! I remember getting a little misty eyed the first time he fell asleep on my chest. His total innocence and perfection just overwhelmed me. I was too young to appreciate that with my own children.
I hope and pray your relationship with your daughter heals with time, and hopefully sooner than later. And like dilli said, if she tries, you must try too. From one parent to another, good luck to you!