homelite 33cc
jwc,
I removed all that stuff from the back of the engine and I cut off the clutch shaft, leaving about 1/2" sticking out. You probably could cut it even shorter. Here's a picture of what it looks like, including the mounting tabs I made from 3/16" G10 board.
I don't know if there's any problems with the needle bearings. "rev" has been using these engines for a few years. Maybe he can comment on them.
Jim