The family of Frances Shand Kydd, the mother of Diana, Princess of Wales, gathered by her hospital bed yesterday after she fell ill at home.

She was reported recently to be suffering from a degenerative brain disease and was admitted to hospital in Oban earlier this week.

Her son Earl Spencer and daughters Lady Sarah McCorquodale and Lady Jane Fellowes visited her at the Lorn and Islands District Hospital, where staff refused to comment on her illness or condition. Lady Sarah said her mother was "making good progress". Lord Spencer made no comment.

Mrs Shand Kydd, the grandmother of Prince William and Prince Harry, is a devout Roman Catholic and was also visited by Fr William McLean of Oban Cathedral, where she worships every week.

She is a well-known public figure and fund-raiser in the local community and he said parishioners were praying for a speedy recovery. He added: "She's on the mend. I have her spiritual needs at heart and as a member of the Catholic community she is a valued parishioner."

The 68-year-old, who converted to Catholicism at the cathedral, lives alone in a detached bungalow on the island of Seil, south of Oban.

Friends say she is determined, despite requests from her children, not to leave the home where she has lived for 30 years.

She said recently: "My family want me to move south to keep an eye on me, but I just couldn't leave here. It is still where my heart is and always will be."

Residents said her health had deteriorated considerably in recent months and she now uses a wheelchair.