Mary,
I don't have any experience with family adoption, but you might try contacting an adoption attorney in your area. The attorney we are working with in Pima County does lots of family adoptions and I think the cost is very low. He didn't charge us anything for meeting with him and answering some of our questions. At the very least they could give you the straight scoop on the process.
http://www.adoptionattorneys.org/states/arizona.htm
Good luck!