That is the rumor. Though I heard something the other day that suggests that he is not as good as he seems. With the rumor, it's hard to imagine him doing something in which he redeems himself.
Ok the rumors surrounding Norrington are:
A) He becomes an Admiral. That's not really a rumor, we know that to be true
B) He does Becket's biding without so much as questioning him, causing both Jones and Governor Swann to despise him
C) He does eventually cross paths with Elizabeth, captures her and eventually releases her to redeem himself.
D) He gets in a three way sword fight with Will, so it's Will, versus Norrington, Beckett and Davy Jones. Apparently, Will starts to lose, and Norrington switches sides
E) There is something contradictory that I heard involving Norrington having something to do with Will's becoming the Captain of the Flying Dutchman.