Originally reported at:
  https://bugs.launchpad.net/bugs/871636

I right-click on a contact and remove.  The contact is removed, but every time I boot up and run Empathy the contact appears again.  This happens over and over, and I cannot remove the contact from Empathy.  The contact is removed if from Pidgin, if I use that, and also from Messenger on my Windows machine.
attached logs

ProblemType: Bug
DistroRelease: Ubuntu 11.10
Package: empathy 3.2.0-0ubuntu1
ProcVersionSignature: Ubuntu 3.0.0-12.20-generic 3.0.4
Uname: Linux 3.0.0-12-generic i686
NonfreeKernelModules: nvidia
ApportVersion: 1.23-0ubuntu3
Architecture: i386
Date: Mon Oct 10 09:08:59 2011
ExecutablePath: /usr/bin/empathy
InstallationMedia: Ubuntu 11.10 "Oneiric Ocelot" - Beta i386 (20110901)
ProcEnviron:
 LANGUAGE=en_GB:en
 PATH=(custom, no user)
 LANG=en_GB.UTF-8
 SHELL=/bin/bash
SourcePackage: empathy
UpgradeStatus: No upgrade log present (probably fresh install)
XsessionErrors:
 (nautilus:1724): Gtk-CRITICAL **: gtk_action_set_visible: assertion `GTK_IS_ACTION (action)' failed
 (nautilus:1724): Gtk-CRITICAL **: gtk_action_set_visible: assertion `GTK_IS_ACTION (action)' failed
 (empathy:1726): telepathy-WARNING **: Failed to remove Telepathy contact ‘shoequeen2@btinternet.com#yahoo’ from ‘stored’ list: Invalid group channel (nil) to add handle 11 to.
 (gwibber-service:1955): libindicate-WARNING **: Menu being changed when the indicator is visible.  Listeners will NOT be notified of this change.