Character limit reached

So, I got a message that my "character limit had been reached" when I tried to make a new character.  There's no apparent way to delete the characters from in-game, and the 360 HDD descriptions don't really differentiate between characters of the same (mine are mostly the same name).  As vexing as it was, I completely deleted all the saves of character that didn't have the same name.

So, one character, completely gone.  I went to start a new game, and I got the same message.  How do I start a new game then?  How can I delete characters from in-game so I can see what I'm doing?  How can I tell "how many" I need to delete if apparently I was allowed to have 1 more than I currently have, but can't make another character now that I deleted them?