Right, it's the bottom-most one on your right-hand side, to the right of "0 Ins" and to the left of "Enter"/"Return". If you're on a laptop, you'll probably had to hold a special function key while pressing it (you should see keys with one symbol in one colour and one in another colour, such as "- Del"). The alternate colour is the key's function when you press it with the special functions key depressed.
If you've tried all that and there really is no Del key within reach, you'll have to edit the key configurations file somewhere in your SH4 directory, unless there's a way in-game to re-map keys.
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