We also still have most of Olivia's stuff in our basement. Some of it we did use for the next baby, sorta liked how they were "hand me down's" from his big sister in a sense. If we ever have another girl, I would like to use some more of it though not everything, some of it feels like it should just be hers.
There was a time when the thought of using it was unbearable, no way could I deal with looking at it, but now I like those ways to incorporate her. We didn't have a ton, so I can't imagine we will ever get rid of what we do have.
We had ordered a crib but it hadn't come in yet, so we were lucky to be able to cancel it with little hassle except me crying to the poor kid from Babies R Us. We ended up ordering the same crib for DS, and it just feels right to me. He's by no means a replacement, that's not fair for either of them, but I like that he has things that were hers, would have been hers, like typical siblings.
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As far as milk, oh this part sucks. It took a few days for me to dry up and wasn't too painful physically. I wore sports bras 24/7 except in the shower and avoided letting water run over my chest except a quick rinse with a washcloth in the shower. I think they don't typically give meds out much for drying up supply much anymore.

Me (29) DH (30)
#1-Olivia Caetlyn-9-28-09-9-28-09, 23+2 wks, emergency classic c-section, class I HELLP, IUGR
#2- Lucas Oliver (rainbow baby)- April 2011, 36+2 wks, HELLP and pre-e free! (lovenox and LDA pregnancy)
#3-Matthew, late October 2012...mostly normal, 37 wks, (lovenox and LDA again)
My blog:
http://www.butterflies-and-rainbows.blogspot.com/