Auburn didn't have a hand sign until fall 2003 (my junior year). I think someone in my chapter learned it at Convention that summer. As for nicknames and what is or is not appropriate, I think it all depends on the campus. If your chapter has been known as the Fuzzies forever and everybody knows you as that, I don't think it needs to be changed. Also, before Betxi Bear was the mascot, it was Al Fuzzy.
ETA: I dod a google search for "al fuzzy" and this popped up.
http://www.imdb.com/name/nm0820607/ Check out the sometimes credited as section and year of birth!