The reason to use heat is to expand the parts so penetrating oil can get inside to do it's job. Sometimes a hair dryer is not enough.
Miriam gave me a Wizard brand sewing machine that had been exposed to rain and the needle bar end was seized solid.
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NOTHING I could do, nothing I soaked it in, would work to loosen up the needle bar. Everything else freed up.
Finally realizing that the machine was junk as it sat and good for nothing but parts, and that I had nothing to loose, I disconnected the clamp connecting the needle bar to the crank and broke out the propane torch. Then using the direct heat of the flame tip I applied heat to the cast iron housing so it would expand, and soaked it with ATF. After a while of that I began to get rusty oil running down the needle bar under the seized area.
Heat it, (not to the point of melting anything or discoloring the metal, just hot) soaking it, then repeating a few times began to get results. Then I put a screwdriver against the base and pried up against the bottom of the needle bar. Eventually it moved. Once I had the needle bar up I cleaned the rust off of the bar and tapped it down. Cleaned more rust off of it.
That worked. After reassembling it I put the Wizard and all it's pieces in a box about 2 1/2 years ago due to other projects and haven't finished it yet. But just before the move I checked it and the machine is so free it spins easily. It is fixable now.
This was admittedly a worst case scenario, but for your 201 I think you need to clean off all the stuff you've used and get some real heat to the casting around the needle bar so the Tri-Flow or ATF or Kroil or what ever you use can actually get between the needle bar and the cast iron housing. Rust flakes can create a physical lockup when they get between a shaft and it's bore. I think that's what has happened in this case.
Joe