I replaced mine with a punch. You need to either have someone else hold the rifle, which is what I did, or put it in a padded vice.
I used a +1.5 replacement. My full-lengh M 96 had a minimum sight setting of 300 meters. Now at 200 yards (the distance I shoot most often) the gun is perfectly zerod when the rear sight ladder is set at about half-way between the closest and longest range settings. That gives me some room to move it back to zero at 100 yards and still gives me room for adjustment for shoots at 300 or 400 or 500 yards. Of course, none of the range markings on the sight itself correspond with the settings anymore. I believe my 200 yard zero is actually at the "500 meter" setting.
I reccomend the +1.5, based on my experience. I think it would work better and give you more room for adjustments than a taller sight.