Margaret F. Peggy (Durney) Kelly-Nichols passed away at Winchester Hospital, on December 14, 2007. She was 61 years of age. Peggy was born and raised in Melrose, graduated from St. Marys Grammar & St. Marys High School, Class of 1964. She worked as a program manager for the Department of Defense for 20 years at Mitre & Hanscom Air Force Base in Bedford. Peggy loved the beach, especially Good Harbor in Gloucester, was an avid reader, enjoyed gardening & cooking. She loved summers in Deer Isle, Maine, enjoyed traveling throughout Europe and has been a lifelong resident of Melrose. Peggy was the wife of Terry M. Nichols. Mother of Peter C. Kelly & his wife Kerry of Saugus, Cathy A. Kelly of S. Dennis. Step-mother of Stephen M. & Jeffrey W. Nichols both of ME and Gregory R. Nichols of PA. Grandmother of Erin & Michael Kelly. Daughter of Charles A. & Frances (Bigley) Durney of Melrose. Sister of Pamela Johansen of Winchester, Paul Durney of FL, Charles A. Durney Jr. of Buzzards Bay, Peter Durney of S. Dennis, Thomas Durney, Patricia Durney both of Melrose, Christopher Durney of Tewksbury, Maryellen Balfour of Melrose and the late James Michael & John Patrick Durney. Also survived by numerous nieces, nephews, grand nieces & nephews. Funeral from the Gately Funeral Home, 79 W. Foster St. Melrose, on Tues, Dec.18th at 9:30AM. Funeral Mass in St. Marys Church, Herbert St. Melrose, at 10:30AM. Relatives and friends invited. Visiting hours Monday 4-8PM. Burial will be private. Memorial contributions may be made in Peggys name to the Jimmy Fund, 10 Brookline Place West, 6th Floor, Brookline 02445.