Ok DONT laugh... too hard anyway.
I was going through the Skype install willie, when I did a 'find'... random, if you will. Just to see what was out there. HEY I am a red-blooded American boy, curious at that. For a joke I searched 'hot' so I could just make some test call to some jokester, much like myself. Ok I found a nice sounding test case (the results of which is an exercise I will leave to you, dear readers).
I clicked Add Contact and rang the poor lady up. A dozen times. WOOPSIES!
So to avoid trouble with my own realtime real life girly, I showed her the errant contact, explaining what I did. She was cool with it and understood my plight, mentioning something about "you perv, delete the contact, mmmkay?" to which I responded: "I cant figure it out! theres no way in the GUI to delete contacts!"
She proceeded to squint at me in that Clint Eastwood fashion and said "make it happen, junior."

The last time I was caught with interesting data on one of my devices was when I defragged my WINXP box, and a filipino bar girl fell out. Anyway, fantastic, this Nokia is. I have had it for less than 4 hours. WEP'd and everything, upgraded to the latest jones and what-not.

Any clues on how to delete my new hot friend from my Nokia N800 Skype Contact list?!

I fingered it out! Hold the stylus down on the contact name, and its like a right click. More options pop up, allowing one the ability to remove a contact.
YAY ME!