Desktop.ini?

Desktop.ini is a file that stores information about customized folders. I customize my folders all the time to make things look 'beautiful' and the Desktop.ini file will show up since it holds all that information. Funny that you think it's 'ugly'.

Hiding it is easy. Just right click on 'desktop.ini', select the 'Properties' button, and set it as 'hidden'. Then open up your Control Panel, find the 'Folder Options' button, select the 'View' tab, and check the box that says something like "Do not show hidden files/folders".

Done.