[RICK LAKE]

RestroCreations It sound like a paint problem when you rotate the flywheel. Sand the paint off the inner lip of the bell housing.
Install the new pins at "0" on both sides. Buy 7/16" 1.5" Allen bolts for this fix. Install 2 at 3 and 6 oclock. Do the run out. Move one side at a time. This will take some time. Too adjust loosen the allen head just a little and hit the bell with a rubber or dead blow hammer and retighten. Keep going back and forward until you have 2 measurement "0" out this would be either 12 & 6 or 3 & 9. The other measure ment should be close.
Side notes, mine was .038" and a pain to center in the car. I got it down to .002" after 2 hours of working on it. When you have it done and "0" in, You should add 2 more alignment pins to the motor block and bell housing. I also welded nut that just clear the dowls on the block and welded them for postion location too. You want to drill through both the lip of the bell, motor block plate and into the block edge about 1/2" with either 1/8" drill bit or 3/16". These pins are for making sure that if the bell is pulled for a repair, you can reinstall the bell housing, by add these 2 pins and have a perfect realignment and not be .000-.010" off the mark. You will get it. Rick L. Ps I like allen head bolts because they have a smaller head and it is easier to get to them with a short allen wrench. I add flat washers and remove enough of the edge to have the washer lay flat on the bell surface.