Sorry for keeping you in suspense, but I had a long overdue appointment with my bone-cracker...
Now, here is what I would do with this tree:
You mention a trunk chop... If you wish to go this route (and I would with this tree) then it is best to do that first, as it will make handling the thing a lot easier during the repot, as well as making it much less likely to blow over while it re-establishes itself. As you will be removing all of the foliage, it doesn't not really matter how low you chop, so long as you bear in mind that some trees will be reluctant to shoot from thick, mature bark. In this case, it appears that there are plenty of nodes which are not yet completely covered by bark, so you could reasonably expect budding to take place quite low on the trunk if you make the chop severe enough.
Krusty_E_Polyanthemos_01.jpg
I would be tempted to chop somewhere near the top of the photo (above), as this will provide for good early movement and the introduction of taper.
After the soak the we talked about above, I would let the soil drain for a day or two. (This is a personal preference, as I don't like getting my fingers wet and cold this time of year.) Get the rootball out of the pot by any means necessary - you may find it easier to simply cut the pot away from the roots, rather than give yourself a hernia wrestling the the thing out.
Have a good look at the roots/soil: I
expect that the soil will retain the shape of the pot, and that there will be a collar of roots that fills the lower 4-5cm, above which there will be compacted soil with the odd root here and there. At this stage, I would remove the weeds/moss from the soil's surface, and gently scratch around the base of the tree to get an idea of any surface roots and further taper (as I stated above, I would be very surprised if the trunk continued to thicken beneath the soil, but you never know).
Remove the collar of roots at the bottom - this might mean removing ¼ of the pot depth in a single swoop (I have a machete and a small, sharp hatchet for exactly this purpose

). Now I would take my
Stick Of Poking™ and tease the soil from the remaining roots, working from the bottom of the rootball upwards. Feel free to cut any roots that make it difficult to remove the soil. (I often use the chopped trunk as a 'handle' and turn the tree upside down, so that working UP through the soil becomes easier, if you get my drift...) Once you get to about ⅓ - ¼ of the original soil depth, start working your way around the edges of the mass, teasing out root ends and looking to create a shallow, radiating bunch of smallish roots.
I wish I had a nursery repot to show, as pictures speak much louder than words in this instance. Please refer to
this thread for a bit of a visual guide.
Anyway, pot into a shallow(-ish) tub with holes (a plastic dishpan works really well, so long as you drill LOTS of holes in it). Secure the stump with wire, and backfill with a very well-drained soil (well-drained enough to accommodate watering every 2nd-3rd day (in winter) without becoming perpetually soaked). Water in, and be sure to water every few days. Place in a spot which is safe from frost, preferably somewhere that receives a lot of sun.
If you have any questions, please ask. I am no expert, but I have had a bit of luck with Eucs.
Thanks, and good luck.
Fly.
PS: Take as many photos as you can during the whole process - it helps when you ask for advice, and it is also a great way of keeping records (as well as clogging your hard drive with Bonsai Wannabe pics, but that's MY story...

).