Normally, dead is dead, but if there's something preternatural involved, that isn't always the case.

Still, if you mean someone who died a pretty straightforward death, no magic involved? Yeah. Normally, in my experience, they're not coming back without some form of necromancy, and even then it's only very temporary.

As for the island, I'm not sure. I've heard the rumor, too, but I've only been here a couple of months. It could be true. I wouldn't put it past this place.