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For removing screws with stripped heads, I use old broken drill bits. Whenever I snap a drill bit, I sand the snapped end flat on the belt sander. Put it in the drill, set the drill to reverse, and 9 out of 10 times the screw comes out.
If the piece is small enough that I can put it on the drill press, I just drill off the head of the screw. Don't do this if you need the piece attached with the threaded section, unless you don't mind the threaded portion of the screw being permanently stuck inside the piece.
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