Pointers as Parameters in Subprocedures

I remember talking on this list with Hans and others about
returning pointers from subprocedures.

In short, Hans pointing out that you shouldn't return a
pointer to local storage from a subprocedure because the
storage could be reclaimed at any time making that pointer
useless in some cases.

Some questions:

1.  I assume the same holds true if you use a parameter to
return a pointer to local storage in the subprocedure.
 This is not a pointer passed in, but a parameter used as a
return value.  
2.  Would defining the pointer as static (still local to
procedure) make a difference in either case (return or
parameter)?
3.  What if the pointer pointed to a global variable in the
module/service program?  

Thanks!

Brad