OK, this is basically cliffnotes from my other post.

I installed a T56 in my A4 car and I had some noise with the car running.

Turned out that teeth on a part of the flywheel were touching the ring on the starter shaft.

You can see my flywheel moving here. (7.4 megs)

The flywheel itself is a used aluminum SLP flywheel I picked up from a local guy. It had some weird spots on it, but they were only on a portion of it.
Pictures here: (about 1 meg each)
Pic 1
Pic 2
Pic 3

My question is, is it normal for a flywheel to have the up/down movement (not perfectly round) and should I try to shim the starter or should I get the steel flywheel (that came with the tranny) resurfaced and use that instead?
Thanks.