I have a 43K 2.0 motor I want to use. I started to reseal the motor to stop some leaks before putting the motor to use. I removed the flywheel to replace the rear seal and found something ugly. I am not sure how this could happen. I cannot see any damage to the flywheel shims. I do not think they touch the damage surface. I measured the end play and found .004" Could this be left over from when the case was machined? Any ideas?

whats wrong with it?

are yoiu asking about the right side outer ring discoloration?

The 2 windows into the crank case that are not there on my blocks???

Whoa!

On the right side there was a burr that had been raised up. It was about 1/16" high maybe more. It cleaned up easily. I have come to the conclusion that the rear bearing must be moving a little in the case and this may have pushed (mushroomed) the metal. End play was .004" There were 3 shims. This thread started just before the site went down so I posted on the Club. There I stated there were only 2 shims. I was wrong. 2 were tightly stuck and I separated them with a razor blade.