Thanks everyone for such quick responses.
Yes Don, there is text in the label box in the metadata. Is this why there is a white label assigned to my images?
Also, there is really no problem with clearing the label. I can either hit '9' like you said or right click/select color label/none. It's just that the whole point of using LR and the reason I love using it is for the workflow. Having to clear the labels everytime I import is just one extra step added to the awesome, seamless, fast workflow that makes LR so good. And having that extra step is well, you know, not good.
Thanks again all, I shall upgrade to 2.3 and see if that helps.
Edit:
Ok! It's fixed!! I went back and read your earlier post Don. I missunderstood it the first time. If there is any text in the label field during import, all photos will be labeled white for some reason.
I went back and imported some more photos without labeling them and wolla, no white labels!
Thanks again to a very helpful thread.
Mark Sirota, here is my attempt at a screenshot of what I was talking about.