I've successfully drilled out stripped screws on a cell-phone (#00 phillips), so I wouldn't knock the idea too much.
Anything can be done with enough time, patience, skill, and/or money
If you think vice-grips are too aggressive, try a hemostat.
I'll admit that I have no idea what the head on xc540 looks like, but if you show me a photo of what you're dealing with (and which screw is stripped), I may be able to offer better advice.