This might help you:

SET @STR = 'James Murphy;#278;#Leslie Owens;#275;#Rita Sallam;#279;#Stephen Powers;#277;#Susan Feldman;#68'

--CHAR(59) is a ; CHAR(35) is #

SET @STR = REPLACE(@Str,CHAR(59) + CHAR(35),',')

WHILE PATINDEX('%[0-9]%',@Str) > 0

BEGIN

SET @Len = LEN(@Str)

SET @T = SUBSTRING(@Str,PATINDEX ( '%[0-9]%' , @STR),PATINDEX ( '%[0-9]%' , @STR)+1)

IF @T = 0

BREAK

ELSE

SET @STR = REPLACE(@Str,@T,'')

CONTINUE

END

SET @STR = REPLACE(@Str,',,',',')

SELECT @STR AS 'Final'

Giving you:

James Murphy,Leslie Owens,Rita Sallam,Stephen Powers,Susan Feldman,