Well I set up my 1/16" drill bit in the drill press, did a center punch mark in the center of the locator pin and slowly drill it, and watched it walk on me on an angle away from the pin center....Arg. Chucked in a 7/32" bit(smaller than 3mm pin size), put a wedge under the rack to try to get it to center, nope...it went at an angle also....ophhh. I'm thinking, now what??? We'll it didn't clear out the pin, but it did free up the action a bit. So I squirted in some LPS-1 greaseless lubricant(Mark's fix for corrosion in electrical connectors!) in the hole hoping that it would get in the groove and help. Yes it did! So I squirted more into the bearing surfaces on either side of the rack rod boss and worked it back and forth a bunch. I'm going to find a small set screw to fit in there to strengthen the remaining section of the pin, cap it and call it a win!
So thanks for all the replies and suggestions to get it freed up. Thankfully, I didn't have to try and remove the throttle rod to go further with it.