Success!! I went out and bought some penetrating fluid called "Moovit" which is available in Canada. I couldn't find the Howes Miracle Lub except at www.gethowes.com.
About 10 minutes later I tried tapping the stubborn sleeve again and voila, I saw movement! It wasn't easy getting it out since I didn't have any flange to grip so I inserted an hex key into the hole where the screw goes and pulled while forcing the key sideways. It came out. I have now got every thing back together except I'll need a new part before the distributor goes back on.
My last question. Should I put some copper type antiseize compound in the cam before I finish the job?
Your comments instilled patience into me when I need it the most.
Thanks to you all for your help.
Now to the next job: Replace the diaphragm and valves in the vacuum pump in my '79 300SD 116. Be prepared I may need help again.
90 300TE4MATIC (124)
79 300SD (116)