A: I had the same problem. I think I have found a solution. Go to your Google Account settings and click on your Google Reader account. It's under "My Products." Don't click "settings" - just Reader. On the left sidebar, you will find something that says "Blogs I'm Following." Click that. Highlighted in yellow at the top of that page is something that says "
When I was signed into my Google account and clicked that link, it sent me straight to a page with all the blogs I am following, and then I could just pick the one I wanted to drop, click on the "settings" button right beside it, and another window popped up with several options, including "stop following this blog." And viola, it was done.
But I could not for the life of me find this on my Blogger dashboard. I found it purely by accident during an episode of intense cursing while trying to find some way to just get rid of one silly blog I was no longer interested in following. I hope this helps.