You're basically correct.
I turn the engine off and engage neutral as soon as I suspect I'll have to stop. Coasting 500 feet won't damage your transmission, the warning is against extended coasting intervals w/ the engine off.
So basically, I hit the bottom of the shallow hill in town, and I can see the red light. It's about 300 feet further from where I can see it. I can tell based on where traffic is moving if I need to shut down or not. At 25MPH, I shut down the engine, coast up to the light, come to a stop. As the guy in front of me moves, I start 'er up and put 'er in gear. By the time the guy in front of me is a comfortable distance away, I can give Cara some pedal, and all's well on the home front.
Many of the townspeople think that my engine doesn't run right because it's always off at that light. They think that it stalls on it's own, because there is no indication that I've just shut it off while coasting.
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