This file goes in app/design/yourpackage/yourtheme/layout/local.xml
<?xml version="1.0" ?>
<layout>
<default>
<remove name="left.permanent.callout" /> <!--the dog-->
<remove name="right.permanent.callout" /> <!--back to school-->
<remove name="catalog.compare.sidebar" /> <!--product compare-->
<remove name="paypal.partner.right.logo" /> <!--paypal logo-->
<remove name="cart_sidebar_not" /> <!--cart sidebar-->
<remove name="left.reports.product.viewed" /> <!--recently viewed prod-->
<remove name="right.reports.product.viewed" /> <!--recently viewed prod-->
<remove name="right.reports.product.compared" /> <!--recently compared prod--> <customer_account>
<reference name="right">
<reference name="customer_account_navigation">
<action method="addLink" translate="label" module="customer">
<name>logout</name>
<path>customer/account/logout/</path>
<label>Log Out</label>
</action>
</reference>
</reference>
</customer_account>
</default>
</layout>