Karen,
Does sound like cow's milk sensitivity to me as well.  Some baby's do have
projectile vomiting even with breast milk.  If baby is happy, content and
gaining weight then I was told by several Pediatricians that it is OK and
most will outgrow by 1 year.  Are you sure mom is really cutting out dairy?
 She's going to have a problem going back to work if she is resistant to
pumping, not to mention that she will probably be very engorged and at risk
for breast infection.  Good luck, it sounds like a difficult situation.
Diane Karnbach, LLL Leader, Va Beach, VA
(and still waiting for Felix!)