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How do I remove individual files from the Open Recent "folder" ? or is the only option to remove everything and start again ?
If you delete the file on the drive. When you click on the link in the recent list, you will get an error message that it can not find the file and will remove that link from the list.
Regarding the ability to selectively remove individual files from the recent file list, here's an "Idea" at the Photoshop Family site, you can vote it to increase the chances of it being implemented in future versions:Photoshop: Ability to remove the files from the recents pain so we can have a better focused look on...