did`ya try a google search on "elgg delete user account" ? ;-P
there's lotsa info on this o-l-d  s-u-b-j-e-c-t already available since 2010 !!
sometimes, oftentimes - google can be quite useful, y'know ?
unless one intends to reinvent the topic posting wheel ;-)
so much preexisting information going to waste ?!;-(
let's just start yet another another new thread ! lolz ;-D

Doesn't look like there's anything for 1.8 yet Dhrup, but it's definitely not hard to do.

lolz ;-) yew not read yet @ http://community.elgg.org/pg/forum/topic/109778/user-deletion-of-own-account/ and lolz ad ;-P how much time does it really take to code that ? beyond the customary 15 minutes ? ;-)

still have not found the default admin link source code to delete a user, where is it? im sure if i can find the source code then i can code it myself, i have found the action file but not the source code for the button itself, anyone know where its located? when im done ill put it into a plugin for all the other people that want this option on 1.8

look for this code :-
       elgg_register_plugin_hook_handler('register','menu:user_hover',...);
this if how those 'admin link' button/URLs/pieces of code are managed via a plugin.

ok i found everything and iv got it all set up, only one problem now, when i try to delete my test user it tells me im not authorize to perform this action, so......im sorry iv done lots of searching i cant find where to change it from a admin action to a user action......any ideas where that might be?

You'd have to unregister the action, then reregister it for authenticated users.  That's assuming the action file doesn't have admin_gatekeeper() in it, in which case you won't be able to do anything with it anyway.

Honestly, you're better off using a new action.  The action you're trying to use can delete any arbitrary user if you're an admin.  Trying to hijack that action for anyone to use could lead to a security issue where a non admin could delete another account.  There are ways to avoid this using your method of hijacking that action, but that would require more work than just writing a new action.

Read the action file to see how the user deletion is done, then implement that in your own action that doesn't require a guid to be passed, but gets the currently logged in user to delete.

if you've 'found everything... all set up... not authorize to perform this action...' -> you're doing something very wrongly in the wrong place - but it's kinda hard to say what's really happening without seeing your code - and without such details - the rest of us got no idea what you're coding and where @ ? ;-X