When you remove someone from your Xbox Live friends list, you
are removed from their friends list and they are removed from
yours.
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If you remove them from your friend list then you cannot appear
on their friends list.
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Yes you are!
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NO
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You can remove them by either going to their page and in the
"Friends" drop-down list select "Unfriend" or by going to your
Friends list and unfriending them from there.