Kmajoos,
Document the issue that this person won't co-operate and then analyse the consequences of this issue - I would predict there are risks of project failure on any combination of time, money and quality as result of this issue. Estimate the liklihood and impact on the project if these risks materialises (and becomes issues).
Escalte to project manager and/or project board and/or his line manager.
Each issue should have an owner and resolution plan and date. Each risk should have an owner, a plan to reduce the liklihood of the risk and an action plan if the risk materialises as an issue.
Bascially, you job is to explain the consequences of the SME failure to the project in terms it can understand and deal with. If the project and his line manager accept these consequences then there is nothing more to do.
If they don't I guess the action plan will be to kick the SME in to co-operation!
Is his point about recognistion true? If so, I can see his point...
Guy