Hey guys this is probably a pretty noob question - but there is this oily residue that is on my fretboard - and i can scratch it off, but its pretty nasty. What is it? and is it Bad?

It is grease from your hands - you have to wash your hands before playing the guitar, specially if you sweat a lot. Even though, it may appear and all you gotta do is when you change strings, clean the fretboard with something like a credit card and then give it some oil (special made oil for guitars - beware of the kind of wood that goes with each oil, Dunlop has a lot of good oils).

It is not BAD, it is just anoying to have and over time it could get so dirty it would affect your tone. And the strings will last less time.
I suffer from quite sweaty hands.
It's normal man, just make sure you wipe the strings after use.
And yeah, washing your hands and dry 'em well. helps keep your hands cool too.

I always wipe my strings with an old t-shirt, Sweaty strings rust and then they sound crap.
On playing the Paul Gilbert signature at the guitar store extensively, my missus sighed:
"Put it down now, It's like you love that guitar more than me!"
In Which I replied.
"Well it has got two F-Holes!"