""Made by Lockheed Martin, the observatory has no onboard steering thrusters, exhaust from which could foul sensitive telescope instruments. Consequently, plans now call for a shuttle crew to return the 13.5-ton observatory to Earth to avoid an uncontrolled atmospheric reentry."

Yeah it uses gyros to point it. It's also in a high orbit so it's orbit decays slowly so does need to be reboosted like ISS. So, sometime around 2010 they are going to bring it down, mainly cause it will be worn out and they will hopeful have better telescope in orbit.
-gb (What's really surprising is NASA's plans to de-orbit ISS- now that's truely sad- worthy of many gnashing of teeth:)