I just got my Windows Phone 7 and added my Outlook, Windows Live, and Facebook accounts to the phone. The phone automatically downloading and merging all my contacts from each source is GREAT! However, I quickly realized that I ended up with 800+ contacts in my People Hub making it a little overwhelming. Especially since most of the contacts came from Facebook and a number of them are people who I don't regularly interact with or I don't need them to be in my phone's contacts list.
So if you're like me and want to remove those unwanted Facebook contacts from your Peoples Hub, follow these steps:
UPDATE FOR WINDOWS PHONE 7.5 (Mango)
This menu has changed slightly. To remove unwanted Facebook, LinkedIn, Twitter, or even a particular e-mail account's contacts, do the following: