While removing the water pump, due to it's failure, I found the upper driver side water pump bolt to be broken. Unfortunately, it is broken just below the block surface so it is impossible to try the handy Craftsman lock pliers etc.

Well, it may be hard to get to it, but I would recommend drilling it out.
Before drilling, tho, take a flat end(drift) punch, and whack the crap out of the bolt a few times. This helps loosen the threads. Then, use a center punch to make a starting point for the drill bit.
Start drilling small, and go larger, a couple of sizes at a time, until it is drilled out to at least half size. Drill all the way thru the bolt. Then soak it down with penetrant, and take a break.

Try the ease-out then. If it feels like the ease-out is gonna twist off, stop. Keep drilling larger. You may have to drill all the way to threads, and then, with a small center punch, you can knock whats left of the bolt out(sometimes, a piece at a time). Once the bolt is out, be sure to run a tap down thru all of the bolt holes before installing the pump.
It's a big hassle, for sure, but it will work, if there's room, and you have a little patience.

Patience is the key to this delima... but you may be able to kill two birds with one stone here... Joel's procedure is spot on, however, if you can find a LEFT HANDED Drill Bit...it might turn the bolt out while drilling the hole, eliminating the need for an easy-out... that is, if'n you can find one... not your everyday on the shelf item at the local Wal-mart, but, possible at a good specialize hardware store or machine shop... just a thought :)

both right,sometime reverse drill works.

Thanks for the directions Joel. I have never seen such good detail on how to get broken bolts out. It will definitely give me something to do for awhile so I better get started. Thanks.

The reverse drill deal is nice, and usually works quite well. However... this is a fairly large size bolt(7/16"), AND it goes all the way thru to the water jacket. This means there will be some sort of "funk" on the exposed threads. This makes it a lot harder to remove by just turning it backwards, tho it may work. It really depends on WHY the bolt broke in the first place. Was it cross-threaded? Wrong threads? Too long? Who the heck knows? It's possible it was just a bolt that was already fractured, and snapped, in which case, it may screw right out( it could happen! ).
Another thing is, if the bolt is not too tight in the hole, drilling the normal rotation may screw it on into the water jacket, since it does go all the way thru.
Either method will work the same.
Good luck! Just don't break off any ease-outs in it...that's when the REAL fun starts!

I am just going to take it slow and easy with the plan you've laid out Joel.

got it out???

No, I haven't had time to touch it this week at all. No real plans for the weekend other than work on it so should be able to get it done. I will post results. Thanks for asking.

reverse drill bit may take it out. sometimes the heat from drilling will loosen any gunk that built up or the bolt itself and come out with no problem. as was said take your time.