Rollover 401K into a Roth IRA?????????

I have a 401K with a company I worked for 13 yrs and it "downsized" and closed its factory production where I was. I got a call from the financial company that handle the 401K and they want me to get my money out of that 401k since I dont work there anymore. I think that by law I do not have to move it but I heard that I could roll it to a Roth IRA and that I can take money out of that Roth to invest in the stock market etc etc?? Is this correct????? I have to call back these guys and find out what they suggest but dont want to get screwed just cause my former boss doesnt want to pay to have me in his companys 401k. Any correct info is appreciated...Thanks!