I wonder if dinos about, maybe he has a few words of wisdom. there seems to be alot of guys with the same problem. I havent started breakin mine in yet but I bet its gonna be as tough as yours.
maybe get a hold of a heat gun so you can apply a little more heat and a bit more accuracy than a hair dryer. Also take the glow plug out to help pull the piston out of tdc if you havent already.
Will leaving the glow plug starter on help prevent the engine from flaming out? I guess it simply just has to much pinch.