Jason, I'v cut the keyway a few thou deeper, and straightened things out a bit with a slot drill, have not measured thw keyway in the flywheel yet, but (in full size) I'm used to making keys to fit unequal sized keyways, so I should be able to fit this one , so tomorrow I'll make a little gib head key. The flywheel fits quite firmly, so thats a good start.
I was reading a bit this afternoon about tapered collets, but I think I'll stay away from that for this engine, it would go well on a hot air engine.
Grub screw damage: on my hot air engines I use brass screws on pullies etc., as these are changed frequently. Two brass screws hold any of the bits on my motors as they don't produce much more than 5 watts at the crankshaft. Ian S C