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I love Margaret and think it is a beatiful name. By honoring your grandmother and all those before her I think this is a great deed. I don't think Margie suits a young child but instead someone older. I know a young Margaret that goes by "Maggie" which I adore and think is very cute. Maybe if you like Maggie the child could go by Maggie as a kid and hopefully the nickname would develope into Margie when she grows.