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I once used an angle grinder (power tool) with a cut-off wheel to remove a badly stuck handle without damaging the spindle or its splines.

There are many possibilities. Try the following with Google/images:
Lonesome lake
Lake of the clouds nh
Chocorua lake
Mt katahdin

Here are 17 different ways, from the master:
http://www.sheldonbrown.com/stuck-seatposts.html

I've had luck with a rubber bladder which goes on the end of a garden hose. Get a bladder the right size for the pipe. You feed the hose into a cleanout in the basement. Feed it in as far as possible...