Partial Roll

Should I withdraw 401K or roll it into an IRA?

I am no longer working at my old job. I have a few bucks in a 401K plan. I was told that withdrawing partial amount to cover living expenses for a while is considered a loan with a higher interest rate than if I just withdrew the whole thing. 1) Is this true? 2) Would it be better to roll it into an IRA? Either way I need to take some to get by for right now.

if you move it to a roth ira you have to pay taxes on it now, but not later

Ken Block off and partial roll at NEFR 2010