What's the worst video game rumor that you've heard?
It would have to be this one for Final Fantasy VII that tells you how to enter the game in real life. Basically you go on the world map in the game then go naked in front of the TV screen, (sorry FFVII: PC players. Looks like you can't enter the FFVII world.) close your eyes and hop around and spin in a circle seven times while patting your head and rubbing your tummy. I read that on GameFAQs somewhere.
There was also this other weird rumor that says Bill Cosby and Tony the Tiger are going to be playable in Super Smash Bros. Brawl.