thanks al..that's probably what i'm going to end up doing.
drak, it's a 70's instrument and the headstock has darkened a lot and has major lacquer cracking. i'm actually going to french polish the whole guitar and i think the headstock needs to match the rest of it.
i think what i'll try first, without any great expectation of sucess is to very lightly sand the finish over the decal and see if i can smooth it down til there's just a bit left covering the decal and then sand around it to bare wood. then try to buff out the finish left over the decal without burning through it and blend the shellac to the edges of what's left over the decal.
hey, it's worth a try, right? if that doesn't work i'll just make another decal.