It also has the pop-up peep sight, but mine has been offset to the right in the dovetail. Any suggestions for re-centring it? A little Kroil and a light tap with a brass punch against a wooden block hasn't done the trick.
Should you determine that you do indeed need to move the peep sight to the center, I have a few suggestions.
First, ditch the Kroil, and try a better penetrating oil. And give it ample time to work into the dovetail. A little heat from a soldering iron might help to break the bond of rust or corrosion too. When I was hired at a GM plant, I was excited to see that all they used for penetrating oil was Kroil, and I had heard wonderful things about it. When I got to use it, I was very disappointed, and found it often failed to soak more than a couple threads deep, even with prolonged soaks and bolts that were not severely corroded. Some folks swear by Kroil. Having used it a lot, I say they need to get out more.
Second, your "light tap with a brass punch" might just be a bit too light. That is a subjective thing, and it's better to tap too lightly than to deform the metal and make matters worse. And dovetail cuts, especially if they were file cut, may have a very slight taper. So they will sometimes be easier to move one direction than the other. You might want to try moving it further towards the right, just to get things freed up. Clean the dovetail if necessary, and then try to move it where it needs to go.