This is caused by Blender not being able to find the textures for the NIF when Viewport Shading is set to "Rendered". Set it to "Solid" and the model will appear gray as you're expecting. As for the size - I don't know. I tried it out and got the same thing but I don't know if that's normal or not for this version of Blender, because I use 2.49. Bear in mind that the scripts for the more recent versions of Blender are experimental. This may be an issue or it could be completely normal. Also the new scripts have Skyrim support built in, so you don't need to pre-edit the NIFs in NifSkope anymore. You only need to do that with Blender 2.49. Also, the pic you posted in the OP is from 3DSMax. Edit: oops you posted while I was typing ^_^. I don't know if you should scale it. Find out first if this is normal behaviour with the new Blender. I think in any circumstances arbitrary scaling is a bad idea.