Ok, I played through the entire game and still haven't found out why it is called Grim Fandango. I heard it was from a poem a character read, but I never found him/her. Could you please tell me who says it, where they are, and what year they're in? Thanks.

It's one of the poems Olivia recites in the Blue Casket in year 2. Just keep asking her to read poems until she gets to it.

^^ yep. A fandango is a type of dance and the whole story could be metaphorically described as a 'grim fandango'.

Why the hell would someone dance a "Grim Fandango"?

I don't think it's a case of wanting to, I meant that Manny just finds himself doing this 'grim fandango' in the LotD in order to find Meche and get to the Ninth Underworld

In a poem Olivia reads out: "But now, we dance this grim fandango; and wait for years, before we rest." I think that's what the line is. ^ ^; *hasn't played it in a long while*

With bony hands I hold my partner
On soulless feet we cross the floor
The music stops as if to answer
An empty knocking at the door

It seems his skin was sweet as mango
When last I held him to my breast
But now we dance this grim fandango
And will four years before we rest (http://tim.grimfandango.net/grim/info/poetry.php)

I wonder which came first, the poem or the game title.

..yeah, that. xD
And; us.imdb.com said the original title for the game wasn't 'Grim Fandango'.

Quote from site: "The game was originally going to be named "Deeds Of The Dead" but the management at Lucasarts didn't want a reference to death in the title."

http://imdb.com/title/tt0177822/trivia)
Wow, never knew that. I have to say, I think Grim Fandango sounds classier.
I wonder if they considered any other titles.

Here's my little theory why the Lucasarts chose the title called Grim Fandango:

Grim; Grim Reaper
Fandango; Spanish dance

Why else would there be grim reapers in the mexican religion?

Just translates to "dance of death".

does anyone know what hijole means?

"Damn". That's all, julfisken.