Photoshop Advice Needed

So I'm a Photoshop hobbyist (using CS5), and, when I can, I like to take on random projects (making wallpapers for people, touch ups, etc.) to improve my Photoshop skills. It's a good exercise. Anyways, my friend recently sent me this picture of a model he wanted a wallpaper of that's stumped me. While there's no nudity, it is a Maxim cover, so it's probably NSFW, so the link is here.

As you can see, removing the stuff behind the girl is fairly easy, since it's a white backdrop. But, of course, the impossibility for me is removing the circular yellow part around her arm, while preserving her arm and still making it still look like an arm/hand. Trying to accomplish this goes beyond my current skill level, but it's still a good challenge I'd like to solve.

So I turn to the professionals: is this something that can even be done? If so, what methods would you use to try to tackle this? Any help is greatly appreciated. Thanks!

Thanks, guys, for the help and for the wallpaper. Much appreciated.

I should have mentioned that I did take a stab at this, last night. What I did was lasso around the yellow circle, and then went to "Remove Color" to try to remove as much of the yellow as possible. This left me with some color similar to the skin, but as you can guess, fairly washed out. Afterwards, I basically just cloned the good part of the arm and just went up to the wrist, and cloned areas of her chest to develop the hand, while adding a little texture. I also used the Color Replacement tool in places. All in all, doing that resulted in this...



Which, for someone who doesn't really know much of what he's doing, I thought wasn't too bad. But you can clearly see how awkward it looks in the wrist area; it just doesn't blend. And, of course, there's still definition missing, and I'm not sure how to recreate that. So at this point, I think the suggestion of finding a similar hand position (which I haven't been able to, thus far) or filling it in with something might be my best bet.

Thanks, guys!

Thanks for all the great feedback, guys. I really appreciate it.

So, I took all your advice and continued to tweak things up to make it look more like a wrist (the lines, a bit more detail and shadows, etc.) and here's the result...