Lady Rwebhu Kidh wrote:
I was on another forum and they were telling their members that the correct way to write poetry now is not to capitalize the beginning of each line, but only capitalize the poem in the same places you would if it was prose. 
Has anyone here ever heard of this, and what do you think about it?
I'm dubious of anyone saying that 
anything is "the correct way to write poetry," or worse "the correct way to write poetry now." After all, as Kipling put it in one of his poems,
"There are nine and sixty ways of constructing tribal lays
And every single one of them is right!"
And even to the extent that I would say there are definite rules to poetry, for every rule there have been at least a handful of poets who have disregarded it with good reason (and dozens if not hundreds who have followed suit for what were 
not good reasons, sigh ...). Look at e. e. cummings, for example; his capitalization, grammar, and diction, were ... unique, to say the least, but many of his poems follow the rules of one traditional form or another (especially the sonnet form) fairly strictly.
But on this particular question: I've been dithering for a while about whether I ought to (in preparing a collection of my poetry for self-publication) make this very change. Each side has its benefits: If you capitalize each line, that's a visual indicator (not necessarily a 
reliable indicator, but an indicator nonetheless) that you haven't simply taken a block of prose and broken it up into lines to call it "poetry." But if you only capitalize the beginnings of sentences (and proper nouns, etc.), that encourages readers to read it "properly," rather than reading one line, pausing, and starting up the next as if it were a new thought. (And, to me, with poetry how it is read or spoken aloud is far more important than typography and such.)