Lack of responses and need to get this done led me to pretty much disassemble the whole shit. lol
To answer my question, in case anybody needs to know later, yes, the adjustment screw was stripped. No, you do not have to crack the seal between the lens and the housing.
That is the vertical adjustment screw. The white part is what you'll need to focus on. Unscrew the two screws on the white part itself and you can adjust the headlight from there. I did not fix the stripped pieces. In fact, I stripped out one of the rusty screws on the white part, so i just forced it open like a boss and turned the gear itself. I'm waiting for my silicone sealer to cure before I put it in and test it. I'd rather it be too low than too high because I hate people who have HID's aimed too high (especially since I'm lowered about 3"). But I digress. Cheers!