I'm doing some research on Chinese culture and orphaned children. My
question is two part:

1) In ancient China, what were the superstitions (and/or social
ramifications) surrouding a child that was born with defects/disabilities?
2) In ancient China, what institutions were in place to take care of
orphans or disabled children?

I'm aware of some writings of Confucius (just general things, like his
emphasis of taking care of the needy), but I'm hoping for specific
historical examples/commentary with well documented sources. Any
period of Chinese history is good, but not "modern" China (I am not
interested in the last 100 years).

As a native Chinese, I can only offer my personal view on your topic.
Q1:Since you have an in-depth study in Chinese culture, you must have
encountered the Chinese belief of "karma" or "retribution"(in Chinese
??). Its main idea is the vice of the ancestor will result in the
misfortune of his offspring. So a child born with defects or
disabilities will be regarded as the punishment of the god caused by
the wrongdoings of the child's ancestors--especially parents. It may
be the most general superstition, and of course not the only one.
Q2:Many orphaned children may be adopted by the Taoist temples or
Buddhist temple.In history, the most famous person of such origin is 
Zhu Yuanzhang(???) the first emperor of Ming Dynasty.
Wish it can offer some help.