I want to remove the rear fender 2
Should you decide that you don't like the looks of your rear fender, and want it to go away, Competition Werkes makes a fender eliminator kit. The kit they sell looks good; it is made of brushed stainless steel and has removable tabs for the license plate and signal pods. However, it does cost $110. Since most board members would rather spend their money on, say, beer, the Dremel tool DIY method is the preferred option.
One thing to think about: Riding in the rain is much more pleasurable with a fender in place.
Unbolt the fender mounts and remove the fender, outline the new shape in chalk, then take a dremel cutting tool to it and reshape as you like. If you want to keep the stock signal flashers (and it's much safer and more visible that way, instead of integrating them into the tail), you'll have to leave tabs for them on the side; don't forget to leave a license plate tab, too.
Here is an underside view of the mod on a different bike. Note the tabs left for the license plate, and also the larger area for mounting the signals. Remember to leave enough room for a hole for the wires to run through. Note how on this bike the signal spacers have been put on the inside. This makes the signals narrower.
Here is the finished product up close:
The whole bike, with fender removed, signals shortened and moved back and up.
Want even more information?
Here's another good write-up on removing the fender.
Have a few hours? Many different ideas at FDT: Fender Elimination/Signals Integration.