ok.....
I orginally was using the stock flywheel. I machined down the fins and away i went. I noticed this engine dosent like to be hand started, so i used my 18 volt drill and it started. I noticed while running I could sight down the prop hub and see it move up and down about a 1/8 or so.[:@] I then turnred down another one, this time for E.I. This one aslo has "wobble"....when I dial indicate the hub in the lathe it is .001 os so.
I put the dial indactor on the engine again to double check how true it was.... and the end of the crank is running at .004 !! magnify that with a 2.5 inch prop hud and thats were im getting the 1/8 wobble i believe.

.004 seems like exsessive runout right?
thanks for all the replies guys..