Reference or Not

Is there a difference between listing a past employer on you resume and listing them as a reference?
I keep hearing a former employer that is listed as a reference is open to say what he/she wants as long as it isn't a lie. If I know what they will say will be bad I'm tempted to leave them off the resume so they can’t be contacted. If I do so and then fill out an application and don't include them I open myself up to being fired at some point don’t I.
What do I do to insure they don’t interfere with my getting a new job?

Someone gave you bogus information. The law of every state limits what a former employer can say to a prospective new employer of the same employee (in other words; You!). It matters not whether you list that employer as a reference or on the bathroom stall.