The harmonic balancer is a very important part of the engine. If it is damaged, you will not be able to set the ignition timing properly, and the engine will be unbalanced. An unbalanced engine will run "rough", and will feel like it has a terrible miss. Left uncorrected, it will also cause permenant damage to the engines internals. $400 is rediculous, though, and if the engine has any warranty left on it, the balancer should be covered. If it's not, have your mechanic verify that it is in fact bad, and have him replace it. Once replaced, have the ignition timing set again, and see if it runs better. If the balancer is in fact bad, replacing it will make a HUGE difference!
Good luck!
Take care,
-Chris
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