Originally Posted by Narhay

Loosen the top bolt of the stem until it sticks out of the stem but isn't fully out of the wedge threads. Smack with a hammer. It should pop down and then the stem should move freely. If it doesn't start using penetrative oil from the top and the bottom and let it sit in both orientations for a day.

If you're still having trouble you can come by and I can see what's what. I have the headset tools and a couple spare spacers.