Right, the torque converter acts as the large majority of the flywheel weight in an automatic.
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Numerous people have told me I need to balance the entire crank assembly with the new flywheel. Is anybody knowledgeable on this?
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They are just being cautious. What you need to do is have the manual flywheel match balanced to the flywheel originally on your engine.
Be 100% sure to mark your flywheel for #1 cylinder at top dead center before you remove it from your engine. The attached picture is what the automatic flywheel looks like. You
don't need the flexplate or torque converter to balance the other flywheel.
The choice to use a manual flywheel from a 240 or 300 is up to you, it will run perfectly fine with either one. The heavier 300 flywheel will give you more torque off the line but the 240 flywheel will give you quicker acceleration.
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Another item that may be a problem is the turbo and transmission interface. I understand when the turbo kicks in it somehow changes the fuel pump delivery volume using vacuum pressure off the Mercedes automatic transmission. If so, I'm going need to figure out how to accomplish this on a manual transmission that has no vacuum pressure. Does anybody know anything about this and what the potential fix is, or whether it’s even going to be an issue?
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The turbo does not use any vacuum for fuel control, it uses boost pressure. One of the great things about having a manual transmission is the significantly more simple vacuum system.