No. It is not true. The real world was real. The theory "Matrix within a Matrix" (MWAM) wasnt true.
Neo was connected to the source. He could see other things connected to the source. They have showed such things "glowing' in the eyes of Neo. He stopped sentinels as well using his connection to the source. As the Oracle did answer him, the power of 'The One" was not limited to the matrix only. It was extended to the real world as well.
lolness...if you came here about 7 months ago, i woulda agreed with you, LemonBrown...but, alas, dear LemonBrown, i know it is untrue...what the Alpha said ^
although, as this is all explained in Matrix Revolutions, i can assume one of two things...1, you haven't seen matrix revolutions, or 2, you have seen revolutions and you are playing a joke...i would rather you ask out of honest desire to know, than as a joke, but hey, that's just me...
jedihdm, if thats the case then how come the oracle said we will see neo again? was she indicating that there will be another "one" or was she implying that he is alive in one form or another. kinda confused by her comment at the end of the movie as to wheither she was talking about neo or another "one". maybe its just a plot hole and i'm looking too deep.