Don't spread that bad rumor.(Note: by doing this you will be able to conserve battery life as the application will not be left open).
HOWEVER, if you do option #2, then on your home screen under the time will be the song that you closed that way instead of the day and date. To get the day and date back under the Time, you simple open up ipod function and hit pause then the home button. This is reallt the best way to close the ipod function if you are not wearing the headset like others have described.Only way to stop the song is to:
1. Hit the pause button and then the home button to go back to the home screen; or,
2. Hold down the home button for five seconds and that will close out the Ipod application and bring you back to the home screen (Note: by doing this you will be able to conserve battery life as the application will not be left open).