Other than a handful of deep sky objects (galaxies, nebulas, star clusters) that can be seen w/ the naked eye, this statement is basically correct. The stars we can see do generally fit inside that circle.
The Best Science Photos of the Week - Feb. 11, 2012
A bubbling cauldron of star birth is highlighted in this image from NASA's Spitzer Space Telescope. Massive stars have blown bubbles, or cavities, in the dust and gas -- a violent process that triggers both the death and birth of stars.
Psalm The heavens declare the glory of God; the skies proclaim the work of his hands. Galaxy-center-protoplanet, September Spectacular cloud of a doomed planet found plunging toward Milky Way's supermassive black hole.