ANSWERS: 3
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Closing your laptop will not harm the laptop itself but if it shuts down you can lose anything that hasn't been saved. So be sure to save any files. This works on desk tops you can try it on your laptop go into Start -> control panel -> power options you should be able to set what you want you laptop to do when you close the cover. Either shut down, or hibernate. When you hibernate you don't have to worry about saving files or losing any data.
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You can also change your power options to 'do nothing', so closing the lid will have no effect, it'll just turn the screen off.
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Of course you can close your laptop while it's still on. But make sure your power options won't make the computer shut down when you close it. In Windows XP go to Control Panel -> Power Options -> Choose what closing the lid does.
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