Used SM oil, TF oil, Liquid Wrench, a heat gun, undo it from the lower end, take loose the needle bar. I can still only get it to budge, something less than a hair when rocking it back and forth. Tried cheating it with Channel-locks on the shaft with the handwheel removed. Tried looking down in there with a mirror and a flashlight, in case they were using the pencil to try and fish out some other little treasure. Oh well, patience...