To hide SeekDroid from the app tray, log into the website and click hide. You then reboot the device and SeekDroid will no longer be in the app tray.
SeekDroid will still show in the Market as installed, but if you have registered Device Administration when you logged into the SeekDroid app on the device, then uninstall from the market will not work. You can click uninstall and it will fail and remove it from the list, essentially hiding it. We do not recommend this though as you will not get automatic updates. We recommend leaving it displayed in the market, and if a thief finds it they will click uninstall and it will seem like it uninstalled, but the app will still work.
If for some reason the website Hide/UnHide icon does not match the actual status of the app on the device, just click the button and it will fix the status.