Hi Brenda,
A possible source for your grandmother's obituary (if you haven't tried this already) is a special roll of microfilm in the Jackson County Library at Newport. This roll contains images of clippings of obituaries from the Jackson County newspapers between 1962 and 1975, if I recall. The obituaries are sorted by surname, so it wouldn't take the librarian much time to scroll for your lookup.
Mark Williamson
ARJACKSO listkeeper