Thanks for that laughs with that twisted up hose! Believe it or not, I have seen regularly driven cars roll into the shop with a brake line twisted up like that.
Working on these cars in the Northeast, I have found that with patience, technique and the RIGHT tools, even the worst, rusted and frozen brake (or any) fittings can be separated without damage. Make no mistake, if you get greedy and rush, expect to round or break the fitting off and turn a half an hour job into something much less pleasant.
As suggested in previous posts you are going to want to get yourself a proper line wrench for the hard-line end of the fitting. Do not think that your are going to do anything else but round it off with an open end wrench. If It were me, I would clamp that rubber hose with a line-clamp or soft-jaws vice grips to prevent draining all the fluid (not necessary if your going to bleed the whole system anyway) and then cut the rubber hose right where it meets the fitting. You can now slip the box end of a wrench over the steel fitting end of the hose. Now heat the daylights out of that union. Ideally you will use proper oxy/acetylene torches so that heating can be quick and local, but mapp-gas or one of those pressurized butane micro torches (like you might see used to light cigars) might do that job as well. Focus the heat on the brake hose end (steel) and get it good and hot. Brake fluid will probably be spouting and smoking at this point, but put the heat right to it. When you feel like it is appropriately hot, brace the wrench you have on the heated steel hose fitting and use a small hammer to whack the line wrench in the loosening direction, simulating an impact driver. 9/10, that brake line will come free no problem. Remember not to focus the heat on the softer copper/brass softer fitting, but the steel. Same deal where the hard line meets the caliper, heat around the caliper. Never do this on a closed system (ie one where the brake hose has not been cut), as the heat will cause the internal brake line pressure to escalate and the hose will explode, spraying hot brake fluid all over your face.
With the appropriate amount of well placed heat, I have rarely had an issue getting much of anything apart. ALWAYS wire brush everything shiny clean before you begin. Nothing sucks more than to get something loose and then have it bind up on the layer of rust halfway up the threads. I have really never had much success in the whole tightening before loosening method, but to each his own I guess.