Date: 3/11/2008 1:34 pm EDT
It is not required to remove tabs around the perimeter, but you can place the tiles closer to the wall if you do. In many cases, you will have cuts on the walls anyway, making the decision moot.
In wet areas like a bathroom, kitchen, or laundry room, we recommend using a caulk around the perimeter. Primarily to help prevent water from seeping around the floor perimeter in the case of a tub or toilet overflow. While even caulk won't prevent water from getting under the tiles, it can slow down the process. The caulk also helps "lock-in" the perimeter tiles.