Take the water pump off and hit the nipple with a rubber mallet so the nipple comes out the front of the block...thats what I heard other people doing...mine is a 98 though so i got to reuse my old nipple and didnt have to do this
some 98's dont need a new nipple some do...all 96-97 do need a replacement. Like said above remove water pump and knock it forward. Is a good time to replace water pump if you have high mileage.
When I did my 97 I had to take mine out... Just remove the water pump and either hit it with a rubber mallet or if you don't have one, I used a regular hammer with a small piece of wood. Mine was pressed in very tight and needed alot of encouragement.