I had a lot of people telling me this when Jazz was born (my grandfather passed away two days before she was born). My dad tried to convince me that he'd been reincarnated... I do believe in reincarnation, although I also believe life begins at conception, and that after death the chances are that souls will move on to on of the other 31 temporary realms before returning to this one. I do think that he hung around for a long time though... a few weeks at least where I could feel his presence and I think Jazz could as well.
(and KTee, a bit of a side topic, but if you believed reincarnation from a Buddhist perspective, the 'extra' souls have come from the other realms )

He always did say he'd never live to see his great grandchild. I always said, throughout my pregnancy "See! Yes you will!". Guess he was right unfortunately. But he always knew... from before I could remember, he knew.
Ah, that makes sense to me! I have always believed in reincarnation but never really researched anything enough to work out where the 'extras' were coming from. Thanks for that, might start doing some looking