Earlier versions of Windows Live for Windows Mobile offered the option to unmerge Windows Live contacts from Windows Mobile Contacts on-the-go.
Newer versions appear to no longer offer this – the option to unmerge is grayed out, so now when you configure Windows Live for Windows Mobile, your Contacts list is cluttered with both Outlook contacts and Windows Live contacts with no way to remove the latter. If you attempt to delete a Windows Live entry in Contacts, you will find that it gets deleted from your Windows Live online address book and buddies list as well.
If you wish to clean up your Contacts by removing Windows Live entries, the only way is to reset your Windows Live account.
1. Launch Windows Live on your device, then select Menu > Account options
2. Select "Switch account"
3. Click [ Yes ] to reset/remove current Windows Live account from your device
4. Run Windows Live setup again, enter your Windows Live account and this time do NOT check "Contacts and Messenger"
(this option has been renamed "Store Windows Live contacts in your mobile phone’s contact list" on newer versions)
* If you want to check or read your Windows Live Hotmail in Messaging, enable/check Email option