Both things are correct, some notes on that season from Wikipedia.
The 2007 season became known for the "Curse of the No. 2", where the team ranked No. 2 by the AP Poll was defeated seven times in the final nine weeks of the regular season:[5]
Stanford defeated No. 2 USC, 24–23, on October 6 at Los Angeles Memorial Coliseum. This result was particularly notable for the fact that USC was favored to win the game by 41 points, having carried winning streaks of 35 games at home and 24 games in Pac-10 play into the matchup. Both streaks ended with this loss.
Oregon State defeated No. 2 California, 31–28, on October 13 at California Memorial Stadium.
Rutgers defeated No. 2 South Florida, 30–27, on October 18 at Rutgers Stadium.
Florida State defeated No. 2 Boston College, 27–17, on November 3 at Alumni Stadium.
Arizona defeated No. 2 Oregon, 34–24, on November 15 at Arizona Stadium.
No. 4 Missouri defeated No. 2 Kansas, 36–28, on November 24 at Arrowhead Stadium in a Border War rivalry game. This was the only such upset where the winning team was also ranked.
Pittsburgh defeated No. 2 West Virginia, 13–9, on December 1 at Mountaineer Field in a Backyard Brawl rivalry game. West Virginia was knocked out of contention for the BCS National Championship on the final weekend of the regular season.
The No. 1 and No. 2 ranked teams had not lost in the same week of the season since 1996. In 2007 alone, No. 1 and No. 2 fell during the same weekend three times, including in both of the final two weeks of the regular season:
No. 1 LSU lost to Kentucky 43–37 in three overtimes, and No. 2 California lost to Oregon State 31–28 on October 13.
No. 1 LSU lost to Arkansas 50–48 in three overtimes on November 23, and No. 2 Kansaslost to No. 4 Missouri 36–28 on November 24.
No. 1 Missouri lost to No. 9 Oklahoma 38–17 in the Big 12 Championship Game, and No. 2 West Virginia lost to Pittsburgh 13–9 on December 1.