I have a windows 7 but when I use 2 finger scrolling on my touchpad, this horrible looking, grey icon/symbol with arrows comes up. Is there any way to change it or at least remove it or hide it?

Can you post a screenshot?

There

Perfectly normal and has been around for a long time.
If you don't like it them stop scrolling with the mouse pad, or mail synaptics and get them to change the icon.