It's an easy out. You drill the broken stud or bolt, and tap it in. The 4 corners dig into whats left of the bolt/stud. Then twist it with a wrench and (usually) it will get it out. DON'T break the easy out off...they are tool steel so you would REALLY be screwed!
You couldn't pay me to dump one of those in anything I own. I like OHV's, and I know the SBC lovers will cry, but they just don't do anything for me. Flatheads forever!!!