I would have said a semicolon and a period rather than two periods, but that's just personal taste. And the quotation marks might be valid if that's something Grandma actually said once.
I'm not sure it's technically a medley -- the excerpts from "Will the Circle Be Unbroken" are actually incorporated into the chorus of this song, so they keep switching back and forth between them. In my experience, medleys usually just segue from one song to the next and don't go back.
The color reminds me of some colorized black & white movies I've seen, so I'm wondering if this video may actually have been colorized from a B&W original. I have no idea how to find that out, though, so we'll probably never know...
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