The Sick and Deceased...

Couple of fast points.. backed up by compressed Hadith..

It is sunnah to visit a Muslim Brother or Sister who is ill..
Hadith:
When a Muslim visits a Muslim brother who is ailing, he remains among the Khufrah (fruits) of Paradise till he returns from his visit. - Muslim
When a Muslim visits an ailing Muslim in the morning, seventy thousand angels invoke blessings for him till the evening. If he visits in th evening, sevety thousand angels invoke blessings for him until morning. And he is alloted an orchard of fruit trees in Paradise - Tirmizi (weak Hadith)

Upon receiving news of misfortune.. or when misfortune has befallen oneself, one must say the following..
"Inna Lillahe Wa Inna Ilaihe Raje`oon" (To Allah we belong and to Him we shall return)
followed by this supplication..
"O Allah! Make good the loss in my misfortune (make recompense) and grant me something better than that which I have lost."
- Muslim

Regarding shedding tears or crying over news of someone's death or any other misfortune..
"Listen! Allah does not punish for shedding tears of grief of the heart, but punishes or forgives the utterance of this." Pointing to his(saw) tongue.
- Bukhari and Muslim

It sunnah and highly recommended to join in funeral prayers and processions. However, women were not allowed to accompany funeral processions. Also a Hadith (Bukhari and Muslim) says that this prohibiton was not strictly enforced.
In fact it was said, the larger the gathering, the better. "If as many as hundered Muslims join in funeral prayer for a person and all of them pray to Allah for his salvation, thier recommendation would be granted." - Muslim

It is highly recommended to bury the dead as soon as possible.
"Be quick in burial of the coffin. If he is virtuous and good, hurry him to good. If otherwise, lay down evil from your necks." - Bukhari and Muslim
However, it is permissible to delay the burial in case of sudden death to ascertain the cause of death.

Also, it is important that the close relatives of the dead pay off his debts..
"The soul of a deceased beleiver remins suspended (from his entry into heaven) till payment of his debt." - Tirmizi (weak Hadith)

Also, there are 3 things that can benefit a person after his death..
"After death of a person, his actions stop, save 3 things.. one being continuos charity, second - knowledge that provides some sort of benefit, and third - a virtuos son who prays for him."

Also, be good to the people around you.. here is why..
"Hazrat Umar(ra) said: Prophet(saw) said: Allah will admit a Muslim into heaven whose good deeds are affirmed by four people. When asked about 3 people, he said : even 3 people. When asked about 2 people, he said: even 2 people. He was not asked about 1 person."

Regarding children who die before puberty..
"A Muslim whose 3 children died before puberty will enter paradise by the grace of his children. The children shall be like a shield for the mother from Hell fire. And the fire of hell shall not touch this Muslim." - Muslim