t-case linkage problem

Ever since I got my Jeep, it's never stayed in 4Lo. It would shift into it, then after about 10 feet, it would pop out. Well I obviously knew I just needed to adjust the linkage since my cross member is dropped an inch, dropping the transfer case.

Sooooo I went out there today and loosened the bolt that holds the rod in position:

I just took the bolt out all the way. I sprayed everything with PB blaster and let it sit, repeated, hammered on and around the block think with a screwdriver and did everything I could to get it loose(tried prying a little). But I cannot get it loose to get the rod to slide free in it to adjust it.

I fully understand what it entails to adjust it and it seems pretty straight forward, but I just can't get the rod loose and there's next to no :room in there to work.

but I know for a fact it's messed up now, since I can't shift into 4Lo at all, when I pull all the way back, the furthest I can get it is into neutral: see pic

That's just the t-case in neutral.

andddddddd I have to shift toward me and to the right just to get 4hi to engage, because when it's pulled back this far, it's still in 2wd: see pic


So does anyone have any suggestions on what to do? It's pretty screwy now.

thanks

Got a propane torch and heated, pd blasted, hammered, repeat.. 3 or 4 times and I got the block thing to move on the rod. Got everything lined up and everything's good.