RadRunner 2 Headset Bearings Seized

[ChopChop]

The headset bearings on my rad runner 2 have seized.  The lower sealed bearing case wont turn. I pulled the stem, but I can't remove the cups or the encased bearing cages.  Does anyone have a tip on how to get them out of the frame? 

The upper bearings are crunchy.  The lower bearings wont run at all.

The fork stem is very rusted mid stem directly across from two holes in the frame.  I think moisture sat in the frame tubes and escaped out of these holes into the stem where they rusted the steel fork stem.  The rust spread, even some of the aluminum is corroded, into both encased bearings.  The lower bearing cage also had to deal with rust falling onto it.  It took some cleaning for me to even be sure that there was a bearing cage at the bottom.

My biggest problem now is that I can't remove the encased bearing cages to see if they can be cleaned and greased. I can't even remove them to replace them.