Honestly, the rot13 bit was a wild (well, not -too- wild) guess on my part. This is a Little Orphan Annie decoder pin:

It's a numeric cipher that can be keyed. The small arrow can point to any of the numbers, and its position changes the code. (Setting the arrow to M would be a rot13 cipher.) The one in the movie seems to work a bit differently (and is probably not an actual cipher anyway), but the way the one in the picture would work is they would announce where the arrow was to be set (6 in the picture) and then you'd spin the inner window around to match the numbers in the code to reveal the letters.
Once I hit on using rot13 on the code result, the rest of it fell into place nicely. I had already solved it and sent the PM to pksage before I saw that Gravenstein had posted the correct image from imgur, thinking that it was the final solution. I thought I might not have been a winner then, because once the image was public, anyone who thought to take that image into an editor could've won easily without doing any of the prior work.
I have absolutely no idea what made me take that image into Photoshop and reduce the brightness all the way, but it was the first thing I did, and it happened to be exactly the right thing to do:

Maybe I've seen this trick before? If so, I can't remember where.
And now, we return you to your regularly-scheduled toy thread. I'm your host, Wylie, and this has been Unnecessary Cryptography Derail. Thanks for tuning in, and remember to drink your Ovaltine™! Congrats to Tallgeese on the new pony!
