Ok, figured it out.
1) The extra items were there because I had both Search Button and Search Button Image set to Yes in the Search Module. Once I set Search Button Image to No, it looked fine.
2) I went into the Coolness template.css and searched for #search: #search { float:right; text-align:right; width: 150px 220px; margin-right: 25px!important; margin-right:15px; overflow:hidden; }
and replaceed the 150px with 220px. This allows the default search inputbox of 20 rather than 10.

Yey! Thanks for your help

Glad you resolved it. If you want to use an image button, create your image, save it as searchButton.gif and drop it into Coolness's image folder.