I took a chance and brought the flywheel to have resurfaced to see what happened. It came out perfect, and he didn't have to take that much off. Thanks for your help!

Today I also installed the harmonic balancer, fuel pump and primed the oil pump. I got about 50lbs at the gauge (it was still going up but my drill was smoking, so I stopped), so I'm happy. Next, I need to install the intake, flywheel & clutch.

So far, so good