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Pry the cap off (where the shift pattern is), and then pull the rectangular pin out with a pair of vise grips (it could be REALLY tight) then unscrew the ****. Simple as that.
This is a quote from the Ripper install under the Tech Tips:
1. Remove Shift ****: Pry up the plastic shift pattern on the tip of the shift ****. Remove the aluminum pressure pin using a flat head screw driver and a vise-grip. Fasten the vise grip to the pin and insert screw driver under tab and pry up. Note: If pin won’t move use some spray lube or liquid wrench to loosen up. Unscrew the shift ****.
When I shortened my shifter that was my main worry was getting the demon key out of the ****. I got a pair of needlenose vise grips and attached them to the demon key and then got the biggest screwdriver that fit thru the mouth of the vise grips. I then took a hammer and started tapping the screwdriver until it came out. It really came out a lot easier than I thought. Once it's out just unscrew the ****.
Once its removed you can take a dremel to its sides and file them down so it isn't so friggin' tight! It only serves one function, to keep the **** from spinning so, making it easier to remove in the future is a good thing.
I also did one other tiny mod to the key before replacing it. I cut into deeper where you insert the screwdriver so there is more lip for the screwdriver to contact when prying it upward.