I'm not certain about this, so keep a backup of the original file.

Go to the skins folder, select _linkblog.php and find...

$Item->permanent_link( '#icon#' );
		echo $linkblog_item_after;

and delete it.

To be a little more precise, you should change:

	echo ' ';
	$Item->permanent_link( '#icon#' );
		echo $linkblog_item_after;
	}

into:

//        Removed: PermaLink icon
//		echo ' ';
//		$Item->permanent_link( '#icon#' );
		echo $linkblog_item_after;
	}

The last line: echo $linkblog_item_after; closes the list-item with </li>. It's not essential, but it should be there. I used // before the lines to comment them out, but you could also delete the lines that are now in orange.