Hi Mike. I'm sure you're not still waiting for an answer on this six months later, but here it is anyway.
I have a Kenmore Progressive Model 116.305... etc. My guess is that its a very similar if not exactly the same construction. Remove the large single screw in the middle of the back of the upright part of the vacuum. The entire top of the handle will then slide off directly backwards if given a little force. Swear words are optional but they worked for me. Hope that helps, if not you, then at least someone...
Mike Stewart, January 2007