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I keep popping this thread up on different searches, and finally felt the need to add to it.
For those without the "screw-out" type alignment pins. Don't bother drilling or cutting. Take a drift-punch or similar device (medium-point works well), put a rag around the area in case you slip, hold the punch on the alignment pin, then give it (the drift punch) a good whack with a (metal) hammer.
This is the factory shopbook referenced method BMW uses to remove them (quote: "twist/drive out centering pin"), and it works really well/easily. They are designed to pop out with force from the top. Less than 30 seconds, easier than any other methods. :-P
(Note that this should be done with everything ON the car; if you are doing suspension work and have the suspension removed, don't try whacking it out with a hammer, as you'll likely bend the weak ring at the top of the strut mounting hat.)
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