Kammy, I believe you- When I was only 1 year old, I remembered my mother and father holding me and handing me to my Italian great grandmother –who never learned to speak English- but was saying a prayer for me in Italian. I remember it as clear as day –all through my childhood up until now (I'm 48 now) so, yes, when something really special occurs that registers in a baby's soul- the child's mind can hold onto that memory throughout life.
These little people you saw do exist- I've read several testimonies from other websites where others have seen the same kinds of beings– and they do wear clothing- many of them do have a liking to wearing caps. I've read some accounts where many of them were seen in green or brown clothes too. I do think that the reason they are not seen all the time is because they do not come into our dimension all of the time– they stay in thier dimension and visit through portals. I think they are a type of small Elven Being- and they are awesome intelligent Beings– humans can learn very much from them on how to live on this planet.
Here is a testimony I saved from the Fairies and Human Congress – Tribe forum where this one person had an encounter at a young age with the same kind of Beings you met..
The first experience I had with the fae I remember very
vividly, though I forgot it for a long time. My grandparents had a big
backyard with fruits and vegetable gardens and an herb garden. Once,
when I was around 5, I spent the night there and after watching Fern
Gully with my grandpa, we went out and I helped him in the garden and as
we worked, I asked him if fairies were real. He lifted me onto his
shoulders and let me pick out fruits of my choice to put on a plate for
the fairies. I picked cherries and we put them on a plate with some
sweetened bread and a small bowl of honey. By that time it was time for
bed and he tucked me in and said "Be careful of they fae, for they
loved to play games, some games would be joyful and fun, but some games
might not be, for there are fae who like to play tricks." That night,
after I knew my grandparents were asleep, I went back into the garden. I
was scared and thought I heard whispers. I could see things moving in
the corners of my eyes, but when I tried to look right at them, they
were gone. Suddenly, right in front of me was a little girl. I reached
to her and she placed her hand on the back of my hand. She said "
Do
not forget us, do not forget this world is our heart as it is yours." I
heard her words, though she never moved her mouth and I know now that
she spoke to my heart and not to my ears. I forgot about this for many
many years until I walked through a store in my city which had one copy
of The Faeries Oracle. When I opened the book, the first card I saw
was The Maiden, and though she looked nothing like the small girl from
so long ago, the events of 10 years past had all come back to me and the
Fae in all there games, tricks, and wisdom have been with me and shown
themselves to me ever since.
Sorry to bore you all with my novel. It's hard not to share when you have people you can share with."