Well the drill/screw, and pull trick didn't work. Whatever has that peg in there has it good, I called Sideshow by phone and the woman I spoke to didn't give me any trouble at all. She was more then happy to transfer me to the return department, but I told her I want't to try and fix it myself first. Now that I know it's not going to happen I'll be calling tomorrow for details on a return.
I really hate to send it back, I'm worried that the second one might have the same problem, the dented abs, or the broken right ankle. I wish there was a way to just get a new forearm or arm all together.
By the way, she did say that eight other people had called with the same problem (stuck wrist peg) so it's not like I'll be telling them something they haven't already heard. I'll post again on how the return goes.