Grabit(sp?) might work here. I've never personally used one but from what I hear they are awsome. I had this happen before to me. I was at the track(in a hurry)so I hacked it out by putting an old L wrench in there, filling with glue stripped out spot with glue, spraying some accelerator, and unscrewing very cautiousally. I was able to use the pinion with a new set screw and even the L wrench lived for another day.
I'd also cut off the end on your hex - they get worn a bit, so cutting it off gives a fresh good end. If that doesnt work, maybe there might be room to get a hacksaw in there to cut your groove.
Losi 8T 1.0, Savage Flux - XL style, LST XXL, Muggy, 3.3 E-Revo Conversion and sitting outside 425hp, 831 Tq Dodge Ram Turbo Diesel. It SMOKES
Forgot to mention that my itchy hands had added loctite before I screwed it in the other time....Man...I think I'm screwed. Unless the loctite does not hold well, at least the screw extractor method may work.