I can't remove a blog from the Reading List - there is no trash can in the Manage wizard!Here, I'll advise you, simply, to not look for a trash can icon.
To remove blogs from your Reading List, click on the gear icon to the far right of "Reading list", on your dashboard. This gives you Blogger: Manage Blogs I'm Following, which contains an inventory of all Followed blogs, by blog title. Alternately, try Google Friend Connect: Sites I've joined. You may be able to use the latter, when the former does not perform.
If you don't see the title of the blog that you are trying to remove, in the Manage list, don't look at the content, in "All blogs". Go to the Reading List and look at each individual blog in the list, one by one, until you find the problem content - then look at the title used by the problem blog. Always start with the correct title.
Once you know the correct title, go back to the Blogger / Friend Connect inventory, and find that title in the list. Click on "Settings", next to the title.
When you click on "Settings", you may have to login to Following / "Friend Connect". If you have to login, select "Google" - then use the correct Blogger account name and password.
In the popup window for the correct title, you'll find the Basics tab selected, with your profile displayed. Beneath the display of your profile, you'll find the title of the blog again - and to the right of that (possibly requiring that you stretch the width of the popup window), you'll find the link "Stop following this site". Click on the link, hit "Stop Following" to confirm, and you're done.
Just don't waste time looking for a trash can icon.