Does the Anglican communion recognize ?

the rosary?

I am just wondering because I thought they do not.... but I have read an article about Diana, Princess of Wales ( who was an Anglican) and it says there that she was buried with her hands clasping a rosary given to her by Mother Teresa (who was a Catholic nun) as a gift when they met in New York....

Answer is 'no'.

Was Diana Anglican when she passed on?

Not the Catholic rosary, but Anglican/Episcopalians have their own prayer beads.

Some high church Anglicans do. The link below is the official website of the Anglican shrine to our Lady at Walsingham (UK). It refers to regular use of the rosary at that shrine.

As with most other questions on the Anglican Communion, the answer is "some do and some don't." It depends on the local parish's traditions and practices, and to some degree, whether the church is "high" or "low." The practice within the Anglican Communion is fairly recent, c. mid 1980's.

The Anglican rosary is not the same as the Roman rosary, though they are used for similar purposes. At a guess, I would say the Roman rosary the Princess was gifted most likely held sentimental value rather than religious value.

For more information on the Anglican Rosary, you can visit the following sites:

http://en.wikipedia.org/wiki/Anglican_prayer_beads
http://www.saintgabriels.org/rosary.html
http://www.emmanuelepiscopalchurchwv.org/The_Anglican_Rosary.html
http://innerlightcentral.com/index.html