True, under certain circumstances, and only on the Xbox. Some people say you have to make sure you face off against Bandon on Manaan, but I've never gotten it to work. The effect of it is to make certain crystals function differently -- some better, some worse.
It would have been a nice added game element to have both the variation of the crystals AND light sabre altering the way it works.(although the effects of each crystal is subtle, and I never really notice the difference)
Note that the special qualities of Bandon's saber are actually classified as a glitch. Also, if you're using the PC version, then the Yavin crystals are much better anyway.