If you have lived in areas with any Indian (subcontinent Indians), or Pacific Islanders, you'll know that coconut oil oxidises (goes rancid) quickly and has a pretty cloying smell - so go light on it, because your nose might become accustomed to what other people find stifling.
I don't know if its an old wive's tale, but I've always avoided excessive coconut in my diet because it's supposed to be very bad for the cardio-vascular system????
I'm not sure what kind of quality oil any of those people were using or if it even was the kind of oil I am speaking of here, since I've heard the opposite of both of these claims, that it does not go rancid quickly and is one of the most stable oils available (saturated oils/fats by nature are much more stable than unsaturated). Also that it actually can benefit the cardiovascular system. Although I think quite a while ago (30-40+ years?) it was thought that all saturated fats were bad for you. It is primarily medium chain fatty acids which are more easily absorbed and utilized by the body. I've read that it can actually help boost the good HDL cholesterol in your body and does not raise the bad.
I'm not at all suggesting people ought to eat gobs and gobs of the stuff or trying to say it's some sort of miracle worker here (it WAS for me as far as the condition of my skin and hair goes however, but every body is different, some will have varying experiences). Some sites you'll find online will basically tout it as mana from heaven. I'm not sure I buy into all that, but I do not believe it is harmful in the way that hydrogenated oils and trans-fats are harmful to the body and arteries. Even the good fats are probably best in moderation.
The main reason I love it is for my skin and hair (seriously, I melt it out of solid form, rub it through my hair, shower...and I get super shiny soft hair). I don't like putting lotions full of ingredients I can't pronounce with petrochemicals, parabens and artificial fragrances on my skin, and find that the coconut oil works well for my skin type and keeps my KP bumps at bay. I don't use it on my face though, like some have done. My facial skin simply can't handle oil on it, it makes it break out like mad.
(If you are curious about this, check the facts on your own, I do not claim to be a professional or claim that all of my knowledge is 100% correct. I've been interested in such things for a while and thus I have read quite a bit from various sources but I can't be bothered to dig them up for everyone elses convenience.)