It looks like the screw is already all the way down on that one. The "square fitting" has the screw on it. The part with the screwdriver slot on top is actually the nut. It is a right hand thread, #3-80. You need to hold the square part and turn the screwdriver counter clockwise to get it loose.
Yes, it needs the "spring" actionOne last thought...
Maybe the real answer is staring me in the face - is the rear sight supposed to be flat on the bottom? Mine is bent, so the rear end is up in the air. Maybe that is the entire problem, and I either need to make it flat, or replace it.
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Is this the way it's supposed to look?