Step 4: Prepare The Flashlight
Before I describe what to do, I just want to say that you have to be quite patient and gentle with this step. The circuit board you'll be working with isn't top quality, and you can easily tear the copper solder pads from the board if you push too hard or don't wait until the solder has liquefied. It can make things very difficult to work with if you manage to damage the board.
Alternate Step: By purchasing and using a solder sucker, removing the solder from the LED legs will be so much easier. But, it requires purchasing an extra tool from RadioShack. It's your choice whether you'd like to purchase the tool or not. It is quite useful if you plan on doing desoldering in the future.
RadioShack's Vacuum Desoldering Tool (Catalog #: 64-2098)
1. Start by pressing your soldering iron against one of the hard blobs of solder that hold the LED into place. Once the solder liquefies, take the tip of the soldering iron and use it to push one of the legs of the LED outward. Press the left one to the left and the right one to the right. (picture #1)
2. Use your wire cutters to snip the legs of the LED off and then pull the LED out from the top of the flashlight. (picture #2)