Ok, so there is a recessed (adjuster??) nut, that requires a specialized socket for removal, on the top ball joint assembly below the large castle nut. Question is... do I have to remove this nut to get the ball joint out, or is there some way to knock/press out the joint without removing it?

Currently, I have the entire wheel assembly removed from the knuckle, axle shaft pulled and tie rod disconnected for some other repairs. It appears the only thing holding the knuckle on is the upper and lower ball joints. Can I just attack this thing with a BFH or balljoint press in place (i.e., without putting the knuckle on a bench), or is some other PITA method required.

85 CJ7, Dana 30

Yes you can go at it with the BFH to get the knucle off then replace the ball joints on the bench with a ball joint press. The special adjustment nut on the inner C I belive is for setting preload on the ball joints, I usuall just leave it where it is when I change balljoints its never given me any problems that way.