permalinks, when I change domains are my permalinks broken?

Hi all,

When I change domains are my permalinks broken?

I am planning to change my URL from: http://domain/wordpress to just http://domain.

When I do this correctly I assume two things will happen:

1. the permalinks to my posts will automatically change from http://domain/wordpress/post to http://domain/post.

2. Links to these posts, on my site created manually with html tags, or on other sites or search engines, will be broken.

Am I right?

Thanks,

W