I live in GA and if I contribute to their 529 I get a deduction on my state taxes. I believe you can open your own 529, you would be the "owner" of the account and she would be the "beneficiary".
I favor contributing to Roth IRA's before doing 529's, anyway. You can still pull the money out for education expenses without a penalty, but then you don't get hit with the penalty if you end up not using it (she gets a scholarship or doesn't go to college). I know you want something that's "hers", but I'd contemplate doing a Roth for yourself first and you could always withdraw to pay for her education later. You'll have to check with the IRS, but I believe you can pull from your Roth for education expenses as long as the person is related to you. Should be in either Publication 590 or 970.