The possibility of a Genetic memory is that our brain could have recorded a distant memory that would have made its way to a newborn? a memory like a residue from the past, a trace.
In regards to the claimed proof of reincarnation:
I think things like wounds coming back as scars on newborns are the result of the pregnant woman being receptive to the action that created the wound. I think that it is a matter of sensory absorption. The wounded was obviously emitting huge amounts of energy and the pregnant woman is already primed into a highly emotive state. Since this phenomena isn't common you would think she is at a higher than normal frequency state with her biorhythms allowing her to receive that input much like a cellular phone or a walkie talkie.
And what about the child remembering the memories of the now deceased? A fetus brain while in development is highly sensitive. Combine that sensitivity with another sense heightening force and you could imagine the memories being projected and received in the same phone manner.
It won't be long before we can project false memories into a brain using computer technology and the right augmentation. Same concept, without the FM radio.