My youngest son was adopted at age 3 1/2, from an orphanage in Romania. It's not an infant adoption story, but many things remain applicable.
One of the best things that I did was to make a scrapbook called "When Liviu Lived in Romania". I used photographs, paper dolls, line drawings, stuff from the internet . . . But the main thing in the book is the narrative: I tell the story (as much as we know it) of Liviu's biological (or bellybutton) parents, why he was placed for adoption and how he came to find us, his forever family.
I made the book for public consumption, meaning that anyone can read it. It lies around the house, just like all of our other books. I send it to school with him at the beginning of each school year; any new babysitter has to read it. THis is mainly so that they know pretty much the whole story, know that it is okay to talk about it and gives them the vocabulary that we use when talking about Liviu's adoption. For example, I prefer to be called his real or adoptive mom. And we call Regina his bellybutton or bioloigcal mom. We don't use the terms 'real' or 'natural' because of the implications. If Regina is the real mom, am I the fake one? If she is the natural one, then am I the un-natural one?
Because this book was written for the public to read, I hid the more private, more difficult information behind a flap. It's difficult to see that the flap is there (due to the design) and difficult to open it. (You have to slide the page out of its page protector). We (the family) know its there but other people don't. The page that can be seen tells the same story in broader strokes.
I used the book Lifebooks: Creating a Treasure for the Adopted Child by Beth O'Malley as a guide to creating my son's Lifebook. It was very, very helpful in knowing what to include -- and how to include the more private information. Plus, it helped me figure out ways to handle the missing stuff (like pictures of Liviu's biological family).
Be aware that creating this book will bring up a lot of emotions for you, for your daughter and for your grandson. There were times that I literally had to hide the book for several days since I couldn't bear to look at it. But now, almost 7 years after I made it, I have to say that I am very much at peace with everything in the book and the whole adoption story.
BTW, my first two sons are biologically mine. I like to say that we made the first two from scratch and did take out on the third!
Feel free to contact me if you want more info or check our www.adoptionlifebooks.com