There are definitely two kinds. There's reincarnation, where they are reborn as a baby with no knowledge of their previous lives. Most Myth religions teach this only happens to great heroes and villains. There're also extra lives, though those apparently involve returning exactly as one was before one's death. I don't think this happened to Soulblighter though, as he was not much of a sorceror until after TFL.
It said he was rumored to be a re-incarnation of Damas. Most likely, this is incorrect and he was immortal or long lived. The same was said of Balor and Connacht, which I suspect is also wrong.
Interesting note: It says Alric may be a re-incarnation of one of the previous heroes/levellers, specifically Moagim. This would explain why he never used cavalry. However, Myth II's epilogue says the great hero is different every time. These would seem to contradict each other.
