Hi Alicia,
Sounds like you're getting the hang of working these things out (which is great),
The method you've worked out with the UNION tool should certainly work. However, while it will give you the total number of species in each grid cell, you will lose the ability to work out which species are present in it. This might not be important to you, but I figured I'd let you know a way of doing this (since I posted something similar on this yesterday - see
https://groups.google.com/forum/#!topic/gis-in-ecology-forum/xjFjUH4iw28).
Presumably at the moment you have a value of 1 (for presence) for each species so that when you add the numbers together during the UNION, you get a total number of species in each polygon. However, if you code each species separately you can also generate a code which tells you which species is present in each polygon (and so grid cell). To do this, you give the first species a value of 1 to indicate its presence, the next a value of 10, the next 100, the next 1000 and so on. Then when you add the values together you generate not a total number of species but a unique binary code whcih tells you which species are present in ant given polygon/grid cell. For example, if all four of the above species were present, you'd geta summed value of 1111, of the first species was absent you'd get a code of 1110, if only the second speceis was present you'd get a value of 0010 (the first two values would be missing so it would read as 10).
The only limitation to this is the fact that if you try to enter too many digits in a field, ArcGIS will then shorten the number to an exponential function (i.e. 1.45+14 for a number with 15 digits) and you will lose information. The way round this is to break your species down into smaller groups, such as individual taxa (such as family or genera) where the total number of species is small enough for the field format to handle and create a field with a binary code representing which species are present for each smaller group. In ArcGIS 9.3 the maximum number of digits you can have in an long interger field before it starts shortening them with an exponential function is 14, this means that each of your smaller groups would have to have 14 or less species for this to work. However, that would only mean having to break your 69 species down into 5 groups.
Anyway, this might not be of interest, but I thought I would mention it in case it was.
As always, any question s about this, or if you need helpm with anything else, feel free to post again.