Take your time with him and don't rush into anything. If he's been sitting for a few years, he needs to get back into a shape and rebalance himself.
When you lunge, do you do it online or off line? Do you do it in a round pen or an arena?
I suggest you do it in a round pen (the circle is already there). Since he has some other ground issues, I suggest that you do not lunge him off line. If he doesn't respect you, nothing is keeping him out on the circle, and that can get dangerous.
Start with may steps with him. Do a smallish circle on a line at just the walk. Praise him when he's circling around you. If he stops or comes in, drive him away from you and make him move his feet. Once you have the basics walk down pat, go into a larger circle and ask for the walk and trot. Continue doing it until you can make him w/t/c online and listen to your voice commands.
I do agree the a lunge whip works well. Think of it as an extension of your arm. It will also keep you at a safe distance from him, should he choose to be a dork and kick out or something.
Also, maybe next time you lunge him and Parker is there, Ask him to come give you pointers/help out. It may prove to help you out :)