A huge effect, Tight is fine for a standard rebuild, ignore all the "it's not a Chevy so needs to be built tight" BULLSHIT that people spout, I stupidly ignore my better instincts when I built my first 7M and had nothing but problems with it, went back to tried and true clearances I'd used in...
May not "need" to but it's always good practice if it's out, PITA to pull it all again if it vibrates, also look at the rear main and the input shaft seal as a matter of course when doing a flywheel off job.
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