To solve Number 2 you must first solve Number 3. Once that is solved, you take the stem all the way out and use a headset wrench (or a big wrench from your dad's tool chest) to take off the headset nuts and then slide that refelctor thingy off.

Here is what a headset wrench looks like: http://www.mec.ca/Products/product_d...=1233934534193


Sekines can be pretty decent bikes, I found one in a scrap yard and gave it to a friend and he loves it.