I don't think you are going to drill that out. On my BMW the shift latch on the wooden knob is held on by a blind roll pin, the only way it can be removed is to pull it out. There are such tools to do so but the price for one was more than a rebuilt part from BMW. I'm going to assume they have the puller to repair them.
If you can get something jammed into the pin and you can get leverage to pull it out then you might have a chance. Either that or drill out the other side and push it through if you can.
They do many special roll pin punches. I have a set for building AR's. On Ford keys we can punch the pin all the way through, if this one is a blind hole it might be worth drilling it out carefully.
Originally Posted By: SHOZ
The roll pin got chewed down by the bit quite easily. It's whatever it's seated in and holding the key blank in. It's only a 3/32" bit.
That may be an allen head screw, it may be the picture but it looks like it has 6 sides.