I worked on getting the saddle out. It was very tight in the slot and appears to have had a touch of glue added. I was trying to grab it to pull up but there was precious little of the saddle sticking up above the bridge to get ahold of. I scored along the edges with a thin razor blade knife and started to tap the ends with a punch. Once I detected movement I started to pry up by inserting a round toothpick into the slot under the saddle. All told it took about 20 minutes to free the saddle. No damage done.
I raised the saddle a full 2/32 with the expectation that I could always sand it back down if need be. I don't think I need to, yet. This has raised the action at the 12th fret by 2/64 giving me a string height of 8/64. I wll let it be and see how it reacts over the next couple of days. Also raising the saddle by this much has greatly increased the break angle over the saddle. I think the saddle height looks much better now.
A few weeks back I was thinking this guitar would never be playable but its actually slowly coming together.
Some pics.