I used the List as the ItemsSource for the DataGrid control.
But it did not update the View if i remove the item from the List
Because the update of a databinding is not a kind of magic, there are several requirements to make databinding working correctly. If you have a single property to bind on this property must be either a dependency property or its parent class must implement the INotifyPropertyChanged interface to notify the wpf binding system about changes of the property value. For a collection there is a simelar mechanism: it must implement INotifyPropertyChanged to inform the wpf binding system about removed/moved/added items.
See here for more details: http://msdn.microsoft.com/en-us/library/system.collections.specialized.inotifycollectionchanged.aspx