Yes it’s true. You can hack your iPod to play Pac-Man and Ms. Pac-Man.
As part of the iPodLinux project, iPodMame is working on a MAME game emulator for the iPod. It’s all a bit technical, but the result is fun, eh? As of right now you can run Pac-Man and Ms. Pac-Man but it seems like there are more games coming soonish.