I wouldn't drill as mentioned earlier. I would follow the Lycoming instructions (aka RTFM) and "pierce" a 1/8 to 3/16 hole.
http://www.lycoming.textron.com/support/publications/service-instructions/pdfs/SI1435.pdf
I've done it a couple of times and found it easier than expected. The plugs are relatively soft material.
Place the ball end of a ball-peen hammer against the plug and hit the hammer with another hammer.
Safety alert !
NEVER hit a ball peen hammer with another ballpeen hammer.....splinters of metal could ruin your day not to mention your vision.....If you insist on doing this use a soft hammer (brass would work) to smack the ball peen.
Drilling a small pilot hole also will eliminate the chance of a larger chunk of steel breaking off of the plug when using the piercing method. YMMV... both methods will work.
I did this in a IO-360 and the plug was not as soft as I expected it.
I dipped my drill bit in grease and drilled a small hole in the center. The grease helps keeping all the metal shaving, then used on of those dent removal tool for body shop to pull it out. There was little oil coming out but not a whole lot.
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Receive a suggestion from a local builder to pound the concave center portion of the plug further in, thereby shrinking the outside diameter of the plug. This worked. Thoroughly cleaned the inside of the crank after extracting the plug.
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