chadsky I have had to think about losing contact with my grandson over the last year - so far I have managed to revive dropped contact, but it hasn't stopped me going through that raw pain and heartache each time contact with him has been withdrawn. I have been close to him since 5 minutes after he was born, and as my first grandchild we have had such a close attachment. Adoption isn't an issue in this case, so I can't begin to imagine how you are dealing (or not) with this devastating time. Do keep trying, and do keep all those special mementoes, send notes for her to keep with her collection of special things for when she is older - they will mean so much to her. Do keep pressing your case, especially if the fostering process was not properly explained to you, and ask if you can attend the court to speak to the judge, or if you can send him/her a letter explaining your side of things.
If, as ga has explained, there is a query about what it would entail if you were to foster your granddaughter, think about what that might be and what commitments you could make to reduce the possibility of that having a negative impact on her. It is a sad fact that advancing age does get taken into account because the time until the child is 18 has to be as secure as possible.
Having worked as a probation officer where the criminal behaviour of one person has impinged on the appropriateness of a child being allowed on the scene, I would say think about any incorrect assumptions that may have been made, in case you can correct them. I'm not making assumptions myself, but I know there have been instances of 2 and 2 making 5 because no-one has checked a potential problem out, or reassurances about perceived problems not being relevant have not been forthcoming. You have to think the unthinkable, just in case there is something assumed that does not apply for you. Keep talking on here because there is so much warmth and support, especially when some of us have had similar harrowing experiences 