Some calculations to show the crustcrawler arm cant do what you want . . .
The crustcrawler robot arm base servo can lift 343 inch ounces.
Looking at the arm, based on given weight and length, and an estimated center of mass at 1/2 distance (probably more), it would require at least
2.34 lbs * 16 oz/lbs * (17.2"/2) = 321 inch ounces
just to lift its own weight . . .
So at full arm extension, the arm can lift and additional 343 in-oz - 321 in-oz = 22 inch ounces.
Now if you put a 16 oz item on the end of the arm, that would require 16 oz * 17.2 inches = 275.2 inch ounces.
Thats ~250 in-oz more than the arm could ever handle!!!
So the reason why their robot arm claims to lift so much is that the rating is NOT at full extension ("max lift capability" just means how much it can lift, not at what distance). If the robot arm was retracted half way, the torque required would also be halved (since the distance is half). Theoritically, the arm can lift its maximum amount when it is completely vertical because the moment arm distance is near zero.
Depending on motions that you require, an X-Y table robot arm might be more suitable for you.