Not necessarily true. Photons travel at the speed of light regardless of inertial reference frame. In other words, everything would freeze except light.
That depends on the nature of the time stoppage. For example, if you froze the passing of time without freezing motion itself, things would still happen, but it'd all be in the same instant. Which I think would be even cooler than the "everything stops" kind of time stop. Imagine being able to marathon three shows, hold a dance party, read a book series, build an invention, take a twelve-hour nap, and then finish your homework, all in one hour!
Unfortunately, physics has only proven that it works in reverse. If you are moving at relativistic speeds, you can take a year to do an hour's worth of stuff, but not the other way 'round. (Unless there's a new development I don't know about! Someone please correct me and say that we've solved total time manipulation!)
Photons are not aware of our concept of "time" you dummy :) Thus they would continue travelling at their constant speed and everything else would be the same, because time as you think of it exist only on you watch and calendar.
Unfortunately, physics has only proven that it works in reverse. If you are moving at relativistic speeds, you can take a year to do an hour's worth of stuff, but not the other way 'round. (Unless there's a new development I don't know about! Someone please correct me and say that we've solved total time manipulation!)