If it's that stuck, and assuming you didn't mangle the threads with the Vice-grip (that's a no-no!), be sure to use a good 6-point wrench or socket on it. Chances are the wrench would break before the screw head mangles.
I second the recommendation for PB Blaster. It's amazing the stuff that it will loosen up overnight. I wouldn't believe it if I hadn't seen it myself. Standard fare for me these days if I am going to be working on something difficult is to spray stuff down the day before I want to start work.
I would be really leery of using a torch around flammable brake fluid and sensitive seals.
First try PB blaster overnight and any available 7mm wrench IFF it fits well on the screw. Only use moderate pressure. If that doesn't work do a second night of PB and go to sears to get a deep 7mm 6-point socket.
Last resort, call Steve D'Gelormo at The Ultimate Garage and get a new/remanned caliper. Don't bother going anywhere else for BMW hard parts. The dealer is great in a pinch too (10% BMWCCA discount). Autozone/Advance seem pretty worthless for a lot of BMW hard parts - when they have it the supplier is junk and it's usually overpriced.
But what do I know?

_________________
Mike Whitney
whit32@gmail.com, 919-454-5445
V10, V8, V8t, I6, I6, V6, F4t, I4, I4, I4, I4, I2, 1, 1