OliveHill - have only just seen this thread now. I thought I would share my experience although I appreciate its quite far from the norm and you may find it a little strange. I know this wouldn't be the choice for everyone.
I had a mmc in August- I chose "conservative management" and eventually lost the baby at home at the beginning of September. I too had the baby's remains. We are Catholics and despite having quite specific beliefs I still wasn't sure what to do as I was at such an early stage (9 wks).
Even though I thought they would think I was mad, I eventually approached a funeral director and confided in them. They said that although they had never handled a bereavement for a baby as early as mine, there was no reason that they couldn't do so. We bought a small casket (one which was usually used for ashes). We thought we were going to have to buy a "lair" or plot in a cemetary but as it turned out the funeral directors advised us that a nearby cemetary had a Baby Garden for miscarried and stillborn babies. They called the council and arranged for our baby to be buried there.
We took the casket away and handled the rest of the arrangements, preparation etc ourselves. We had a lovely service at the graveside with our priest and family members.
As it turned out the Directors waived their administration fee and the council didn't charge for opening up the lair.
I know we were very blessed to find such understanding and support in our home town. I think our local council are fantastic for providing a Baby Garden as I know many areas don't have one.
It's strange that I only saw this thread today because although we had a temporary marker and memorial for the grave it was only today that we went along to the memorial sculptors to see about a permanent little memorial or "headstone". The reason I hadn't done this before is because I am pregnant again (10 weeks today) but have been having cramps/spotting throughout. I didn't want to arrange the memorial in case I had to add another little name to it.
However I had a scan today and we saw a healthy little baby wriggling around on the screen! I am absolutely ecstatic! It may seem strange but even though we were so happy we couldn't forget the little one we lost so afterwards went off to arrange his memorial. It didn't seem nearly so sad.
I know some of you reading this may think I am crazy. Believe me at the time, despite my firm beliefs, I did worry if people would think I was daft, or was making a big fuss or whether my baby was big enough to deserve a place in the Baby Garden etc. But we believe that no matter how big or how well the little body is formed, our baby's soul was just as formed as yours or mine. I hope this doesn't offend anyone who doesn't share this view or who has lost a baby or a child at a much later stage (which I know must be so much worse) but it was and is a great comfort to me.