Quote Originally Posted by Big D View Post
In Dirge of Cerberus, it seems that her body's been entombed in the naturally-occurring Materia crystals of the cave. She's no longer truly alive or dead, though - she can whisper apologies to Vincent in a way that might be slightly telepathic, but her spirit's also begun returning to the Lifestream, which is proven when (SPOILER)Shelke retrieves the Protomateria from her, inside Omega.
She is still alive and her spirit is not returning to the Lifestream. She is just "sleeping" in the mako crystal, because of her guilt over what happened in the past(like Vincent sleeping in the coffin).
Shelke have some memories of Lucrecia inside of her head and is "connected" to her during DoC, because Shelke absorbed Lucrecia's memories in the Network. It doesn't mean that Lucrecia's soul is returning to the Lifestream.