Clicking Noise from A/C

Ok, I have a clicking noise coming from my A/C. Only comes on at full cold and one notch abouve full cold. I took the glove box apart, and i can see a white arm trying to move, but appears stuck (and making the clicking noise). I tried to push and pull it to free it from the "jam" but no luck.

Any ideas?? anyone else have this problem?

My dealer said that he just had a similar problem in and it was over 1000 dollars to fix.

so any help would be greatly appreciated.