The Pod is Sackboy's home, and also where he can get to any published level.
The Pod starts off as a plain cardboard dome sheltering Sackboy and is very boring to live in. To avoid the boring appearance of the Pod, it is customary for Sackboys to decorate their pods using stickers and decorations. The areas in the Pod, with exception of the Pod Controller and the front window, can be decorated in this way.
Unfortunately, Sackboy's hard work can be destroyed at the blink of an eye by other visiting Sackboys. Annoying Sackboys will enter others' Pods and put stickers or decorations everywhere, vandalizing Sackboy's home and is most of the time forced to reset the Pod completely and start again from scratch after throwing the annoyance out.
The Pod Controller rests at the front of the Pod, and allows Sackboy to travel all about LittleBigPlanet. Once Sackboy activates it, he has access to the Story Mode Levels or all of the Community Levels published to roam around in.
Sackboy is a master of creation, so it only makes sense that his Pod is well built just as well.
The Pod is held up by string, so if Sackboy runs left and right enough, the Pod will rock back and forth like a cradle.