Solved the problem.
In case anyone esle had this issue I am posintg the answer.
The problem was that I had signed out of MobileMe and as a result the iDisk was not showing in the Finder, Preferences, Sidebar, Devices.
I signed back in MobileMe and low and behold iDisk was showing in the Finder Preferences. I then unchecked it, and the iDisk Icon immediately disappeared. I then went back and signed out of MobileMe.