Ouch! Get that flywheel out of there. Do not run the car. I had the same problem as you. My motor is still running strong 5 years later but I'm just lucky. I read somewhere that a 1/4oz out of balance is something like 250 lbs of force at 6000 rpm.
Also my 28oz flywheel was not drilled for the 10.5" clutch bolt pattern, and if I'm not mistaken the extra clutch area touched some holes drilled in the flywheel.
If you have the money,buy the FMS billet with 28oz removeable weight. It's drilled for both size clutches and can be 28, 50, or 0 oz weight. Pretty sure it's sfi approved.
BTW you'll love the T-5(If it doesn't break). Gives you room for higher gears.
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