The shutting down of COP is one of the oldest and most persistent Disney rumors you will find on the net. Here are just some examples of the "COP moving to the Smithsonian" version of the rumor...
1/21/2009: "Rumor that I heard when I was at the park (from a guy who's cousin is a CM) is that they are moving the ENTIRE building to the Smithsonian Museum in Washington, DC. Since it is a landmark building. "
1/31/2008: "While in line for SSE this past weekend, I overheard some people talking that next year they are dismantling the COP and moving it to the Smithsonian. The guy who said it claimed to be a cast member."
4/12/2007: "a friend of mine who is very much into keeping up on disney happeneing told me a few days ago that they're going to close carousel of progress and put it in the Smithsonian"
3/26/2007: "Also, unconfirmed rumors are circulating that Carousel of Progress will be entering the Smithsonian in 2009 along with the Enchanted Tiki Room but you didn't hear it from me."
5/11/2004: "Has anybody heard anything about Carousel of Progress being donated to the Smithsonian? It's probably just a rumor, but on the other hand, its something that I haven't heard before. "