Hi Walter, if you return an empty UL that should turn off the
indicator just fine. The problem with just returning nothing (or a
single space) is that it breaks during the
Ajax.Autocompleter#updateChoices method, due to the following line:

Element.cleanWhitespace(this.update.down());

This is because this.update.down() returns null and
Element#cleanWhitespace blows up when you pass it a null.

See this reference document for more info:
http://github.com/madrobby/scriptaculous/wikis/ajax-autocompleter

-justin
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