How can I edit or remove people from the favourite contacts widget on my HTC Legend?
You can access them through the group "Starred in Android" in GMail
For editing, this question should help, although it's specific to the HTC incredible. For removing, it's the same idea (select contact name, not icon) then remove them from the Favorites Group. Hope it helps.
To change whether a contact is a favorite or not, go to your contact list, click on the contact name, then toggle the "star" in the top right corner of the contact screen.
Removing it from "favourites" or "starred in android" didn't work for me. I don't have any star either on my HTC Wildfire.
You have to find your contact in the "Phone" list (this one where you go when you want to call someone, middle bottom of the desktop). Then you touch it, wait until menu arrives and... tap "remove from favourites". Interesting that you won't find this option in "People" app, or in contact details either.
You can also go to Contacts > Details and add or remove the star to make them favorite or not. It worked for me.