I think I've heard that you can shoot 5.56 in a .223 but not the other way around.
You've got it backwards:
http://www.stormfront.org/forum/showthread.php?t=144981Contrary to popular belief, 5.56mm is NOT another name for the .223 round, as opposed to 7.62x51 being the same as .308 NATO. The 5.56 round was designed after the common sporting round, but has two slight, although important, differences. Both are minor, but enough to cause some major if not deadly problems if you put 5.56 into a .223 chamber. .223 may be fired in a 5.56 chamber however. Here are the reasons why:
1) The 5.56 round has a length .002 longer than the .223 round.
2) The 5.56 round has a slightly steeper shoulder angle.
What this all boils down to, is that unless your .223 is specifically chambered in 5.56 to accomadate the military ammunition, you run the risk of blowing the gun up in your face. Colt and Bushmaster chamber ALL their .223 in 5.56. A few other companies chamber their AR15s in 5.56 as well. The big danger is in using 5.56 in bolt action rifles or the Ruger Mini 14, OR AR15s manufactured by some of the lesser known companies, particularly those that are not mil-spec or defense contractors.