Can't really help you with the morning breath Nadine. I would guess that it's normal. Does she have any sort of milk before/while going to sleep, or in the night?

Glycerine might be okay when bub just has gums, but I would definitely stop using it now she has teeth. All that sticky, sweet stuff sitting on her teeth will just cause decay. You can probably introduce some tooth paste when she's 18 months-2 years, at least by the age of 2. It's a good idea to teach kids to spit it out, even with children's toothpaste.