From what I've heard and read from my friends, videos, blogs and things, you can still walk around once you die. I dont have Minecraft on the computer (see my most recent question), only on the iPod touch. It seems like you become some sort of ghost?

No, this is not true. Unless your friends mean you respawn back into your house after your death. When you do die on the computer version, the screen will tint to red of a sign of blood or death or 'game over' thing. Your items are also knocked out of your inventory and it comes up with the option 'respawn' or something like 'quit to title screen.' Unless what you were watching was a type of mod, this would be considered false.

As far as I know that's what happens. And I can also state I have the latest version. The 'ghost thing' subject may be in any way related to herobrine issues because this fake mob is claimed seen on others minecraft version. Though vagely, I think herobrine *was* a mob till it was removed on the latest update. Herobrine was also well-known as the ghost of minecraft. I hope my answer will help.

no but there might be a mod that u can do that with......i have pc but the i pod might.....

No you can't...But the best thing that is SIMILAR to that is that in Minecraft you can spin your head around while you are in a bed :D