I have the same problem with the number 1 not disappearing on the settings app after I upgraded to ios5.0.1 today.
I tried a normal restart and a hard reboot but it's still there. I've gone into the menu several times and "checked for updates" but it still refuses to recognize that that number 1 no longer needs to be there. It's not like its hurting anything but its annoying because that little number didn't appear until ios5.0.1 was released. Maybe this is an apple bug.