I have been asked by my Grandfather not to sleep keeping head towards North and the reason he has given that there are earth magnetic poles. At the age of 8, i was not able digest the concept of magnetic fields and the same magnetic fields haunted me till age of 18 through a subject called physics.
Later in life I have came across many article that we should not do sleep towards north.
e.g: http://in.answers.yahoo.com/question/index?qid=20071013133129AAzsdSm
